An increase in real GDP
A) shifts the demand for money curve rightward.
B) shifts the demand for money curve leftward.
C) leads to an upward movement along the demand for money curve.
D) leads to a downward movement along the demand for money curve.

Question

Quizplus · Accepted Answer

An increase in real GDP increases the demand for transactions, which in turn increases the demand for money, shifting the demand for money curve rightward.

An Increase in Real GDP