Which of the following factors primarily influences the demand for money in an economy?

The primary factor that influences the demand for money in an economy is the level of income. When people earn more money, they tend to spend more, which increases their need for cash to make purchases. For example, if a person receives a raise at work, they might want to buy a new car or take a vacation, leading them to hold more money for these expenses. Additionally, when the economy grows and more people have jobs, the overall demand for money rises because more transactions are happening. Therefore, as income increases, so does the demand for money to facilitate those transactions.