Which of the following factors would affect the demand for real money balances?

Question

Quizplus · Accepted Answer

All three factors (payment technologies, expected inflation, and liquidity of other financial assets) can affect the demand for real money balances. Payment technologies may influence the convenience of holding and using money, expected inflation affects the real value of money balances, and the liquidity of other financial assets can influence the opportunity cost of holding money.

Which of the Following Factors Would Affect the Demand for Real