Which of the following is most likely to lead to an increase of 1% in the nominal demand for money?

Name: Which of the following is most likely to lead to an increase of 1% in the nominal demand for money?
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Question

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An increase in the price level leads to an increase in the nominal demand for money, as more money is needed to purchase the same goods and services at the higher price level. Therefore, an increase of 1% in the price level is the most likely to lead to a 1% increase in the nominal demand for money.

Which of the Following Is Most Likely to Lead to an Increase