People tend to hold less money as

Name: People tend to hold less money as
Brand: Quizplus
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Question

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People tend to hold less money when the interest rate falls because they prefer to invest in interest-bearing assets. When credit availability rises, individuals and businesses can more easily borrow, reducing the need to hold cash. If the average price level falls, less money is needed for transactions. Similarly, when incomes fall, people have less money to hold.

People Tend to Hold Less Money as