An increase in the demand for money would result from a(n):
A) decrease in nominal GDP.
B) decrease in real GDP.
C) decrease in the price level.
D) increase in the price level.

Question

Quizplus · Accepted Answer

An increase in the price level would result in an increase in the demand for money, as people would need more money to purchase the same goods and services at higher prices. Conversely, a decrease in the price level would decrease the demand for money, as people would need less money to buy the same goods and services at lower prices.

An Increase in the Demand for Money Would Result from A(n)