Which of the Following Decreases the Demand for Money

question 114

Multiple Choice

Which of the following decreases the demand for money?

• A) an increase in income
• B) an increase in real GDP
• C) a decrease in the price level
• D) expectations of higher bond prices

---

Definitions:

Unconscious

Relating to the part of the mind that is inaccessible to conscious thought but that affects behavior and emotions.

Memory

The cognitive process involving encoding, storing, and retrieving information, allowing individuals to retain and recall past experiences.

Pleasure Principle

A psychoanalytic concept suggesting that people seek immediate gratification to fulfill their desires and avoid pain, without considering the consequences.

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it realistically, as opposed to the pleasure principle.