Use the following figure to answer the question :

-In the figure above,one factor NOT responsible for the decline in the demand for money is
A)a decline the price level.
B)a decline in income.
C)an increase in income.
D)a decline in the expected inflation rate.

Question

Use the following figure to answer the question :

-In the figure above,one factor NOT responsible for the decline in the demand for money is
A)a decline the price level. 
B)a decline in income. 
C)an increase in income. 
D)a decline in the expected inflation rate.

Quizplus · Accepted Answer

An increase in income would typically lead to an increase in the demand for money, as people have more money to spend and thus require more liquidity. The other factors listed - a decline in the price level, a decline in income, and a decline in the expected inflation rate - could all potentially lead to a decrease in the demand for money.

Use the Following Figure to Answer the Question