The two most important factors that cause the money demand curve to shift are
A) real GDP and the price level.
B) nominal GDP and the Fed.
C) the price level and the nominal interest rate.
D) the nominal interest rate and the money supply.

Question

Quizplus · Accepted Answer

The money demand curve shifts due to changes in real GDP, which affects how much money people want to hold for transactions, and the price level, which affects the purchasing power of money.

The Two Most Important Factors That Cause the Money Demand