Which of the following will cause a reduction in the amount of money individuals wish to hold?

Question

Quizplus · Accepted Answer

An increase in the interest rate will encourage individuals to save more and spend less, leading to a decrease in the amount of money individuals wish to hold. An increase in income and an increase in the price level will typically increase the amount of money individuals wish to hold, as they will have more money to spend and prices for goods and services will increase.

Which of the Following Will Cause a Reduction in the Amount