Final answer:
An increase in interest rates(B) is most likely to lead to a decrease of 10% in the nominal demand for money.
Step-by-step explanation:
To answer this question, we need to understand the factors that affect the demand for money. The demand for money is influenced by several factors, including income, interest rates, inflation, and government spending.
Out of the options given, an increase in interest rates(b) is most likely to lead to a decrease of 10% in the nominal demand for money. When interest rates rise, individuals and businesses are less willing to hold money because they can earn higher returns by investing in other assets or by lending money to earn interest.
On the other hand, an increase in income, inflation, or government spending may actually increase the demand for money as individuals and businesses need more money to make purchases or to handle larger transactions.