Which of the following is not assumed to be constant along a money demand curve?
A) the price level
B) the interest rate
C) real GDP
D) nominal GDP
E) individual tastes and preferences

Question

Quizplus · Accepted Answer

The money demand curve assumes that factors such as the price level, real GDP, nominal GDP, and individual tastes and preferences are constant, except for the interest rate, which is not assumed to be constant along the curve. Changes in the interest rate are what cause movement along the money demand curve.

Which of the Following Is Not Assumed to Be Constant