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:

Plant Assets

Long-term tangible assets used in the production process of a business, including machinery, buildings, and equipment.

General Journal Entries

Accounting records that are used to document business transactions in the general ledger in chronological order.

Transactions

Transactions are actions involving the transfer of goods, services, or funds between two or more parties.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.