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Which of the following statements about the demand and supply of money is most accurate? People who are: A. holding money when interest rates are lower will try to increase their money balances and, as a result, the supply of money increases. B. holding money when interest rates are higher will try to reduce their money balances and, as a result, the demand for money decreases. C. buying bonds to reduce their money balances will increase the demand for bonds with an associated increase in interest rates. |