Which of the following would lead to a rightward shift of the money demand curve?
A) Expectations that the interest rate will fall
B) New substitutes for money become popular
C) The use of electronic money increases
D) Substitutes for money become less popular
E) The use of credit cards increases.

Question

Quizplus · Accepted Answer

If substitutes for money become less popular, consumers will demand more money and the demand for money curve will shift to the right. A rightward shift means that, for any given interest rate, people will want to hold a greater quantity of money. A decrease in popularity of credit cards could be an example of this.

Which of the Following Would Lead to a Rightward Shift