Which of the following is NOT assumed to be constant along the money demand curve?
A) price level
B) interest rate
C) real GDP
D) nominal GDP

Question

Which of the following is NOT assumed to be constant along the money demand curve?  
A) price level 
B) interest rate 
C) real GDP 
D) nominal GDP

Quizplus · Accepted Answer

The money demand curve assumes that the price level, real GDP, and nominal GDP are constant, but it does not assume that the interest rate is constant. The interest rate is typically the variable that changes along the money demand curve.

Which of the Following Is NOT Assumed to Be Constant