An Increase in Which of the Following Variables Will Cause

question 48

Multiple Choice

An increase in which of the following variables will cause a decrease in money demand in the current period?

• A) The expected future nominal interest rate.
• B) The expected future income.
• C) The current income.
• D) The current nominal interest rate.
• E) The current real interest rate.

---

Definitions:

Right of Disaffirmation

A legal right allowing minors to void contracts they have entered into, based on their incapacity to fully understand the terms.

Ratified

Formally approved or confirmed, often in the context of treaties, contracts, or legislative acts.

Promissory Note

A written, legally binding document in which one party promises to pay another a definite sum of money either on demand or at a fixed future date.

Alcohol-Related Incapacity

A state of being unable to function or make decisions due to excessive consumption of alcohol.