People will want to hold less money if the price level
A)increases or if the interest rate increases.
B)decreases 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 less money if the price level decreases because they need less money for transactions. Similarly, if the interest rate increases, holding money becomes less attractive compared to earning interest, so people will hold less money.

People Will Want to Hold Less Money If the Price