If the price level doubles, all else constant, the quantity of
A)real money demanded will double.
B)nominal money demanded will double.
C)real money demanded will half.
D)nominal money demanded will half.
E)nominal money demanded will remain constant.

Question

Quizplus · Accepted Answer

When the price level doubles, the nominal money demanded will double because people need twice as much money to conduct the same transactions at the higher price level.

If the Price Level Doubles, All Else Constant, the Quantity