A decrease in ________ decreases the demand for money.
A) the discount rate
B) real GDP
C) the interest rate
D) the quantity of money

Name: A decrease in ________ decreases the demand for money. A) the discount rate B) real GDP C) the interest rate D) the quantity of money
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Question

Quizplus · Accepted Answer

A decrease in real GDP reduces the amount of goods and services produced, thereby reducing the demand for transactions and, consequently, the demand for money.

A Decrease in ________ Decreases the Demand for Money