JAMB Economics 2020 Objective — Question 27

Question 27 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.

The speculative demand for money is inversely related to

A. interest rateCorrect
B. level of income
C. exchange rate
D. inflation rate

Explanation

As interest rates rise, the speculative demand for money falls - the two move in opposite directions.

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