An increase in which of the following variables will cause a reduction in the amount of money individuals wish to hold in the current period?
A)current income
B)the current nominal interest rate
C)the current real interest rate
D)expected future income
E) all of the above

Question

Quizplus · Accepted Answer

An increase in the current nominal interest rate makes holding money less attractive because individuals can earn more by saving or investing, leading them to hold less money.

An Increase in Which of the Following Variables Will Cause