If the price level doubles, all else constant, the quantity of
A)nominal money demanded will half.
B)real money demanded will double.
C)real money demanded will half.
D)nominal money demanded will double.
E)nominal money demanded will remain constant.

Question

Quizplus · Accepted Answer

When the price level doubles, the nominal money demanded will double because people need more money to conduct the same amount of transactions at higher prices.

If the Price Level Doubles, All Else Constant, the Quantity