An Increase in Income Will Cause

question 71

Multiple Choice

An increase in income will cause

• A)a reduction in the supply of central bank money.
• B)a reduction in the demand for currency.
• C)an increase in the demand for reserves.
• D)none of the above

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Definitions:

Complements

Goods or services that are used together, such that an increase in demand for one typically increases demand for the other.

Demand for Cream

The consumer interest and willingness to purchase cream, influenced by culinary trends, diet preferences, and availability of substitute products.

Demand Curve

A graph representing the relationship between the quantity of a good desired and its price.

Price

is the amount of money expected, required, or given in payment for something.