An increase in the price level leads to a
A)rightward shift of the supply of money curve.
B)movement upward along the demand for money curve and no shift of the curve.
C)rightward shift in the demand for money curve.
D)leftward shift in the demand for money curve.
E)movement downward along the demand for money curve and no shift of the curve.

Question

Quizplus · Accepted Answer

An increase in the price level increases the demand for money as people need more money to buy the same amount of goods and services, causing a rightward shift in the demand for money curve.

An Increase in the Price Level Leads to a