Other things constant,an increase in the real GDP of a country will:
A)increase the price level.
B)shift the demand for money curve rightward.
C)shift the demand for money curve leftward.
D)decrease the nominal interest rate.
E)decrease the quantity of money demanded.

Question

Quizplus · Accepted Answer

An increase in the real GDP of a country indicates economic growth, which typically leads to higher demand for transactions. This increased demand for transactions shifts the demand for money curve rightward, as more money is needed to facilitate the higher volume of economic activities.

Other Things Constant,an Increase in the Real GDP of a Country