What could shift the demand for money curve rightward from the curve illustrated in the figure above?
A) a decrease in the supply of money
B) an increase in the supply of money
C) a fall in the inflation rate
D) a fall in the nominal interest rate
E) an increase in real GDP

Question

Quizplus · Accepted Answer

An increase in real GDP leads to higher income and transactions, which increases the demand for money, shifting the demand curve rightward.

What Could Shift the Demand for Money Curve Rightward from the Curve