A change in _____ does NOT shift the money demand curve.
A) the interest rate
B) the price level
C) banking technology
D) real GDP

Question

Quizplus · Accepted Answer

The interest rate does not shift the money demand curve; instead, it moves along the curve because it represents the cost of holding money versus holding other assets. Changes in the price level, banking technology, and real GDP can shift the money demand curve by affecting the quantity of money people want to hold.

A Change in _____ Does NOT Shift the Money Demand