When the price level increases,people demand ________ money and the demand for money curve ________.
A)more;shifts rightward
B)less;shifts leftward
C)more;shifts leftward
D)the same amount of;does not shift
E)less;shifts rightward

Question

Quizplus · Accepted Answer

When the price level increases, people need more money to carry out the same amount of transactions, so the demand for money increases, causing the demand for money curve to shift rightward.

When the Price Level Increases,people Demand ________ Money and the Demand