Movements along a money demand curve reflect the effects of changes in the:
A)price level on the quantity of money demanded.
B)interest rate on the demand for money.
C)real exchange rate on the demand for money.
D)interest rate on the quantity of money demanded.
E)potential GDP on the quantity of money demanded.

Question

Quizplus · Accepted Answer

Movements along a money demand curve are caused by changes in the interest rate, which affect the quantity of money demanded.

Movements Along a Money Demand Curve Reflect the Effects of Changes