Figure 17-1

-Refer to Figure 17-1.In the figure above,the money demand curve would move from Money demand₁ to Money demand₂ if
A) real GDP decreased.
B) the price level increased.
C) the interest rate decreased.
D) the Federal Reserve sold Treasury securities.

Question

Figure 17-1
 
-Refer to Figure 17-1.In the figure above,the money demand curve would move from Money demand₁ to Money demand₂ if
A) real GDP decreased. 
B) the price level increased. 
C) the interest rate decreased. 
D) the Federal Reserve sold Treasury securities.

Quizplus · Accepted Answer

An increase in the price level would increase the demand for money, shifting the money demand curve from Money demand₁ to Money demand₂.

Figure 17-1 -Refer to Figure 17-1.In the Figure Above,the Money Demand Curve