The demand for money depends on:

Name: The demand for money depends on:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The demand for money depends on all three factors - the interest rate, the average level of prices in the economy and income. When interest rates are high, people tend to hold less money and when prices are high, people demand more money to purchase goods and services. Similarly, when income levels increase, people generally demand more money to conduct their transactions. Therefore, all the options A, B and C are correct.

The Demand for Money Depends On