Which One of the Following Factors Would Reduce the Quantity

question 179

Multiple Choice

Which one of the following factors would reduce the quantity of money balances that households would want to hold?

• A) higher prices
• B) a rise in inflation
• C) higher nominal interest rates
• D) an expansion in nominal income (nominal GDP)

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Definitions:

Correct

Conforming to fact or truth; free from error, in alignment with a standard or expectation.

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The cognitive process of moving one's focus from one subject or object to another.

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Verbal communication between individuals through the use of mobile phones, often raising concerns about safety and etiquette in various contexts.

Attention

The mental process of concentrating on specific stimuli while ignoring others, enabling processing of relevant information.