All else constant, if the GDP in an economy increases then:

Name: All else constant, if the GDP in an economy increases then:
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Quizplus · Accepted Answer

When the GDP in an economy increases, the demand for money increases because there is more economic activity and people and businesses need more money to make transactions. This is because an increase in GDP typically leads to an increase in income and savings, which in turn leads to an increase in demand for money.

All Else Constant, If the GDP in an Economy Increases