An increase in real GDP
A) leads to an upward movement along the demand for money curve.
B) shifts the demand for money curve rightward.
C) shifts the demand for money curve leftward.
D) leads to a downward movement along the demand for money curve.

Question

Quizplus · Accepted Answer

An increase in real GDP leads to an increase in transactions, which in turn increases the demand for money. This results in a rightward shift of the demand for money curve.

An Increase in Real GDP