How is the money demand curve affected when price level increases?
A) The money demand curve shifts to the right.
B) The money demand shifts curve to the left.
C) The money demand curve is NOT affected.
D) The slope of the money demand curve changes.

Question

How is the money demand curve affected when price level increases?  
A) The money demand curve shifts to the right. 
B) The money demand shifts curve to the left. 
C) The money demand curve is NOT affected. 
D) The slope of the money demand curve changes.

Quizplus · Accepted Answer

When the price level increases, people need more money to buy the same amount of goods and services, leading to a rightward shift in the money demand curve.

How Is the Money Demand Curve Affected When Price Level