Which of the following changes will shift the money demand curve rightward?
A) an increase in the price level
B) a decrease in real GDP
C) a decrease in the nominal interest rate
D) an increase in the nominal interest rate
E) a decrease in the price level

Question

Quizplus · Accepted Answer

An increase in the price level raises the demand for money because people need more money to buy the same amount of goods and services, shifting the money demand curve to the right.

Which of the Following Changes Will Shift the Money Demand