Which of the Following Is Most Likely to Lead to a Decrease

question 88

Multiple Choice

Which of the following is most likely to lead to a decrease of 10% in the nominal demand for money?

• A)An increase in real income of 5%
• B)A decrease in real income of 5%
• C)A decline of 10% in the price level
• D)An increase of 10% in the price level

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Definitions:

Cash Payments

Transactions that involve the transfer of cash from one entity to another.

Inventory Increase

An rise in the quantity or value of goods held by a company for the purpose of sale in the normal course of business.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the good.

Accounts Payable Decrease

A reduction in the amount a company owes to its suppliers or vendors, indicating payments have been made.