If the price level doubles, the
A) nominal demand for money increases.
B) real demand for money increases.
C) real demand for money decreases.
D) nominal demand for money decreases.

Name: If the price level doubles, the A) nominal demand for money increases. B) real demand for money increases. C) real demand for money decreases. D) nominal demand for money decreases.
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Question

Quizplus · Accepted Answer

When the price level doubles, people need more money to carry out the same transactions, so the nominal demand for money increases.

If the Price Level Doubles, the