Figure 17-1

-Refer to Figure 17-1.In the figure,the money demand curve would move from Money demand₁ to Money demand₂ if

Question

Figure 17-1
 
-Refer to Figure 17-1.In the figure,the money demand curve would move from Money demand₁ to Money demand₂ if

Quizplus · Accepted Answer

According to the figure, as real GDP increases, the money demand curve shifts to the right, from Money demand₁ to Money demand₂. This is because as GDP increases, people have more income and therefore require more money to make transactions, leading to an increase in the demand for money.

Figure 17-1 -Refer to Figure 17-1.In the Figure,the Money Demand Curve Would