During the past year,Lotusland saw an increase in the price level and increase in interest rates on financial assets,but a fall in personal incomes.The overall demand for money fell.Which of the following factors was most likely to have contributed to this fall in the demand for money?

Question

Quizplus · Accepted Answer

Higher interest rates make holding money less attractive as people prefer to invest in interest-bearing assets, and lower personal incomes reduce the amount of money people have to hold.

During the Past Year,Lotusland Saw an Increase in the Price