4. (5%) Which of the following statem ments is incorrect?
(A) The real return on money at hand (cash) is the negative inflation rate.
(B) in a closed economy, it is the interest rate adjustment that brings the money market into an equilibrium.
(C) If the real interest rate increases, the demand on money declines.
(D) The natural rate of interest is the real interest rate at which the demand for goods and services equals the
natural rate of output.
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