If real money demand increases 5%,and real money supply remain unchanged,by about how much does the price level change?

Question

Quizplus · Accepted Answer

When real money demand increases by 5% and the real money supply remains unchanged, the price level must fall to restore equilibrium in the money market. This is because the increased demand for money, with a constant supply, leads to a higher value of money, which corresponds to a lower price level.

If Real Money Demand Increases 5%,and Real Money Supply Remain