A high demand for money (as in Japan) would result from:
A) a decrease in nominal GDP and a high crime rate.
B) a decrease in real GDP and a preference from businesses to accept only debit cards.
C) a decrease in the price level.
D) low crime rates and widespread lack of capacity to accept noncash payments.

Question

Quizplus · Accepted Answer

A high demand for money can be influenced by factors such as low crime rates, which make people feel safer holding cash, and a lack of infrastructure to accept non-cash payments, necessitating the use of cash for transactions.

A High Demand for Money (As in Japan) Would Result