When would the quantity of money demanded by the public tend to increase by the greatest amount?

Question

Quizplus · Accepted Answer

The quantity of money demanded by the public tends to increase by the greatest amount when the interest rate decreases and nominal GDP increases. This is because a lower interest rate encourages borrowing and spending, which in turn leads to an increase in nominal GDP. With higher nominal GDP, people demand more money to finance their increased spending.

When Would the Quantity of Money Demanded by the Public