Which of the following will most likely cause a decrease in the quantity of money demanded?

Question

Quizplus · Accepted Answer

An increase in the interest rate will make borrowing more expensive and saving more attractive, leading to a decrease in the quantity of money demanded. On the other hand, an increase in inflation rate and income typically lead to an increase in the quantity of money demanded. Therefore, options B and C can be eliminated.

Which of the Following Will Most Likely Cause a Decrease