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

---

Definitions:

Utilities Expense

Costs associated with the consumption of utilities such as electricity, gas, water, and sewer services by a business or household.

Supplies

Supplies refer to the materials and items that are used in the daily operations of a business, office, or institution, often consumable and requiring regular replenishment.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to check the equality of debits and credits and prepare financial statements.

Revenue Accounts

Accounts in financial accounting that represent the income generated by a company from its operational activities.