The quantity of money people want to hold increases if
A) the price level falls.
B) the nominal interest rate rises.
C) real GDP increases.
D) All of the above answers are correct.

Name: The quantity of money people want to hold increases if A) the price level falls. B) the nominal interest rate rises. C) real GDP increases. D) All of the above answers are correct.
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Question

Quizplus · Accepted Answer

When real GDP increases, people engage in more transactions, leading to a higher demand for money to facilitate these transactions.

The Quantity of Money People Want to Hold Increases If