If the price level rises, there is
A)a leftward shift of the demand for money curve.
B)an upward movement along the demand for money curve and the curve does not shift.
C)a downward movement along the demand for money curve and the curve does not shift.
D)no movement along the demand curve for money and the curve does not shift.
E)a rightward shift of the demand for money curve.

Question

Quizplus · Accepted Answer

As the price level rises, the real value of money falls, making people demand more money to hold the same amount of real wealth. This leads to a rightward shift of the demand for money curve.

If the Price Level Rises, There Is