In 2006, real GDP in Belgium grew at a 3 percent rate and inflation was 1.8 percent while the population did not change. As a result, there was the demand for money curve in Belgium.
A) a movement up along
B) a leftward shift of the
C) a rightward shift of the
D) no change in

Question

Quizplus · Accepted Answer

A rightward shift of the demand for money curve would occur due to the 3 percent real GDP growth and 1.8 percent inflation, which increases the overall demand for money within the economy.

In 2006, Real GDP in Belgium Grew at a 3