A decrease in the demand for money would result from:
A)an increase in income.
B)an increase in real GDP.
C)a decrease in the price level.
D)an increase in nominal GDP.

Question

Quizplus · Accepted Answer

A decrease in the demand for money would result from a decrease in the price level, as people would require less money to purchase goods and services. An increase in income or GDP, as well as an increase in nominal GDP, would typically lead to an increase in the demand for money as people have more funds to spend or invest.

A Decrease in the Demand for Money Would Result From