An increase in the level of real GDP in the economy leads to
A) a leftward shift in the demand for money curve.
B) a rightward shift in the demand for money curve.
C) a leftward movement along the demand for money curve.
D) a rightward movement along the demand for money curve.

Question

Quizplus · Accepted Answer

An increase in the level of real GDP in the economy leads to an increase in transactions and therefore an increase in the demand for money, which shifts the demand for money curve to the right.

An Increase in the Level of Real GDP in the Economy