Which of the Following Increases the Quantity of Money Demanded

question 69

Multiple Choice

Which of the following increases the quantity of money demanded?

• A)A rise in the inflation rate
• B)A fall in the nominal interest rate
• C)An increase in real GDP
• D)A rise in the real interest rate
• E)A rise in the nominal interest rate

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic performance over time.

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services within an economy.

Aggregate Demand

The comprehensive economic demand for all goods and services, marked at a particular price level over a certain period.

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in bank accounts.