The demand for money curve shifts rightward if
A) the real interest rate decreases.
B) real GDP increases.
C) the price level increases.
D) the nominal interest rate increases.

Question

Quizplus · Accepted Answer

When real GDP increases, people have higher incomes, and they want to spend more. As a result, the demand for money increases, and the demand for goods and services increases as well.

The Demand for Money Curve Shifts Rightward If