Which one of the following, other things equal, would NOT cause an increase in the Amount of money demanded in country A?
A) an increase in A's national income
B) an increase in the price level in country A
C) a fall in interest rates in country A
D) an increase in the rate of expected inflation in A

Question

Quizplus · Accepted Answer

An increase in the rate of expected inflation in country A would actually encourage people to spend or invest their money rather than hold onto it, as the value of money is expected to decrease over time with inflation. This would not increase the demand for holding money.

Which One of the Following, Other Things Equal, Would NOT