If the size of income of a family is increasing, the precautionary demand of money will .

increase

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

decrease

No worries! We‘ve got your back. Try BYJU‘S free classes today!

remain constant

No worries! We‘ve got your back. Try BYJU‘S free classes today!

become zero

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A increase
With higher incomes, the precautionary demand will increase because expenditures may increase.

Suggest Corrections

Similar questions

How is income related to precautionary demand for money?

Q. If the rate of interest increases, the precautionary demand for money will be .

If the availability of credit is low, the precautionary demand for money will be:

List factors that affect precautionary demand for money.

When the quantity demanded of a commodity increases with increase in income and decreases with decrease in income, the income elasticity of demand will be

Join BYJU'S Learning Program

If the size of income of a family is increasing, the precautionary demand of money will .

The correct option is A increaseWith higher incomes, the precautionary demand will increase because expenditures may increase.

The correct option is A increase
With higher incomes, the precautionary demand will increase because expenditures may increase.