An decrease in the ________ would induce people to hold a larger fraction of their wealth in the form of money.
A)unemployment rate
B)inflation rate
C)money supply
D)interest rate

Question

Quizplus · Accepted Answer

A decrease in the interest rate would lead to a decrease in the return on savings accounts and other interest-bearing assets, making them less attractive compared to holding money. As a result, people would want to hold a larger fraction of their wealth in the form of money.

An Decrease in the ________ Would Induce People to Hold