Which of the Following Factors Would Affect the Demand for Real

question 9

Multiple Choice

Which of the following factors would affect the demand for real money balances?

• A)payment technologies
• B)expected inflation
• C)liquidity of other financial assets
• D)All of the above are correct.

---

Definitions:

Policy Decision Making

The process by which governments or organizations establish rules, directives, and guidelines to influence and determine present and future decisions.

Interrelationships

Mutual or reciprocal relations between components within a system, indicating how they influence or interact with each other.

Cost Method

An accounting method used for recording investments, where the investment is recorded at its acquisition cost without recognizing periodic income but dividends received are recorded as income.