During an economic expansion,the demand for money ________ because ________.

Question

Quizplus · Accepted Answer

During an economic expansion, real GDP increases due to an increase in economic activity and production. As incomes rise, people tend to demand more goods and services, leading to an increase in the demand for money. This is reflected in higher consumer spending and investment activity, which require more money to finance. Therefore, the correct answer is E.

During an Economic Expansion,the Demand for Money ________ Because ________

During an Economic Expansion,the Demand for Money Because