During a(n) ________ the demand for money decreases because ________.
A) recession; nominal GDP increases
B) recession; the price level rises
C) equilibrium; real GDP decreases
D) recession; real GDP decreases
E) expansion; real GDP decreases

Question

Quizplus · Accepted Answer

During a recession, the demand for money decreases because real GDP decreases. This is because in a recession, economic activity slows down, leading to lower income and spending, which in turn reduces the demand for money.

During A(n) ________ the Demand for Money Decreases Because ________

During A(n) the Demand for Money Decreases Because