The money demand curve will shift to the right when which of the following occurs?

Question

Quizplus · Accepted Answer

An increase in income will generally lead to an increased demand for money as people have more funds available to spend or save. This means that the money demand curve will shift to the right. Reductions in the interest rate and increases in the money supply may also affect the demand for money, but they would not necessarily always lead to a rightward shift in the money demand curve.

The Money Demand Curve Will Shift to the Right When