How Do Income and Interest Rates Affect the Quantity of Money

Multiple Choice

How do income and interest rates affect the quantity of money that households and businesses will demand?

A) Demand increases if income rises but decreases if interest rates rise.
B) Demand increases if income rises and increases if interest rates rise.
C) Demand decreases if income rises but increases if interest rates rise.
D) Demand decreases if income rises and decreases if interest rates rise.