Three macroeconomic factors that affect the demand for money are:
A)the nominal interest rate, real income, and the price level.
B)the nominal interest rate, capital, and labor.
C)globalization, skill-biased technological change, and labor mobility.
D)capital, labor, and technology.

Question

Quizplus · Accepted Answer

The nominal interest rate affects the opportunity cost of holding money. Also, when real income grows, more money is demanded for transactions. And when the price level rises, more money is needed for each transaction.

Three Macroeconomic Factors That Affect the Demand for Money Are