The factors that could cause money demand to shift do NOT include:
A) real aggregate spending.
B) institutional constraints in the banking system.
C) technology of transactions.
D) interest rates.

Question

Quizplus · Accepted Answer

Interest rates do not cause the money demand curve to shift; instead, they represent a movement along the money demand curve. Factors like real aggregate spending, institutional constraints, and transaction technologies can shift the demand for money by changing how much money people want to hold at any given interest rate.

The Factors That Could Cause Money Demand to Shift Do