Which one event does NOT decrease the demand for money?
A) an increase in the aggregate price level
B) the emergence of ATMs
C) the ability of the stores to process credit cards
D) a fall in real GDP

Question

Quizplus · Accepted Answer

An increase in the aggregate price level actually increases the demand for money because people need more money to buy the same amount of goods and services when prices are higher. The other options (B, C, and D) describe factors that would decrease the demand for money by making it easier to access money or reducing the need to hold money.

Which One Event Does NOT Decrease the Demand for Money