If the value of a dollar falls,then the quantity of money demanded
A)rises,meaning people want to hold more of their wealth in a liquid form.
B)rises,meaning people desire to work more so their income rises.
C)falls,meaning people want to hold less of their wealth in a liquid form.
D)falls,meaning people want to work less so their income falls.

Question

Quizplus · Accepted Answer

When the value of a dollar falls, people tend to hold more money in liquid form to maintain their purchasing power, leading to an increase in the quantity of money demanded.

If the Value of a Dollar Falls,then the Quantity of Money