People will want to hold more money if the price level
A)or if the interest rate increases.
B)or if the interest rate decreases.
C)increases or if the interest rate decreases.
D)decreases or if the interest rate increases.

Question

Quizplus · Accepted Answer

People will want to hold more money if the price level increases because they need more money for transactions. They will also hold more money if the interest rate decreases because the opportunity cost of holding money is lower.

People Will Want to Hold More Money If the Price