The demand for money increases and the demand curve for money shifts rightward as a result of
A) an increase in the use of credit cards.
B) a decrease in the real interest rate.
C) a decrease in the price level.
D) an increase in real GDP.
E) a decrease in the nominal interest rate.

Question

Quizplus · Accepted Answer

An increase in real GDP leads to higher income and transactions, increasing the demand for money, thus shifting the demand curve for money to the right.

The Demand for Money Increases and the Demand Curve for Money