In the market for money,when the price level ________,the demand curve for money shifts to the ________ and the interest rate ________,everything else held constant.
A)falls;right;rises
B)rises;right;falls
C)falls;left;rises
D)rises;right;rises

Question

Quizplus · Accepted Answer

When the price level rises, people need more money for transactions, shifting the demand curve for money to the right. This increased demand for money, with supply constant, leads to a higher interest rate.

In the Market for Money,when the Price Level ________,The Demand