An increase in income will cause

Name: An increase in income will cause
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in income does not necessarily lead to a reduction in the supply of central bank money, nor does it directly reduce the demand for currency or reserves. Instead, an increase in income could lead to an increase in the demand for currency as people have more money to spend and may also increase the demand for reserves as banks seek to hold more reserves to support increased lending activities.

An Increase in Income Will Cause