Which of the Following Increases the Demand for Money

question 113

Multiple Choice

Which of the following increases the demand for money?

• A)More and more companies eliminate fees for consumers to set up automatic bill paying systems.
• B)A recession in Japan reduces Japanese imports from the United States.
• C)The economy experiences deflation.
• D)The government raises the tax on interest in income from bonds.

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Definitions:

Total world income

The aggregate of all the earnings generated by individuals, businesses, and governments across the entire world within a specific period.

G8 and G20 countries

Groups of major advanced and emerging economies, respectively, that discuss and cooperate on international financial and economic issues.

Developing country

A nation with a less developed industrial base and a lower Human Development Index relative to other countries.

Material well-being

The state of having sufficient material resources and wealth to lead a comfortable life, encompassing factors like income, assets, and access to goods.