In the Keynesian liquidity preference framework,a rise in the price level causes the demand for money to ________ and the demand curve to shift to the ________,everything else held constant.
A)increase;left
B)increase;right
C)decrease;left
D)decrease;right

Question

Quizplus · Accepted Answer

In the Keynesian liquidity preference framework, a rise in the price level increases the demand for money because people need more money to conduct transactions at higher prices. This increased demand for money shifts the demand curve to the right.

In the Keynesian Liquidity Preference Framework,a Rise in the Price