Which of the following decreases the demand for money?
A) a decrease in the cost of printing money
B) an increase in the quantity of money
C) a decrease in real GDP
D) an increase in the price level

Question

Quizplus · Accepted Answer

A decrease in real GDP typically leads to less spending in the economy, resulting in a decrease in the demand for money. A decrease in the cost of printing money (A) has no effect on the demand for money. An increase in the quantity of money (B) generally increases the demand for money. An increase in the price level (D) may increase the demand for money as people need more money to pay for higher-priced goods and services.

Which of the Following Decreases the Demand for Money