Figure 11.1 Alt text for Figure 11.1: In figure 11.1, a graph shows shift in the money demand curve.
Long description for Figure 11.1: The x-axis is labelled, quantity of money, M (billions of dollars) .The y-axis is labelled, interest rate, i.2 lines are shown; MD1 and MD2.Line MD1 begins in the top left corner and slopes down to the end of the x-axis.Line MD2 follows the same slope as line MD1, but is plotted to the right.
-Refer to Figure 11.1.In the figure, the money demand curve would move from MD₁ to MD₂ if

Question

Figure 11.1

Alt text for Figure 11.1: In figure 11.1, a graph shows shift in the money demand curve.
Long description for Figure 11.1: The x-axis is labelled, quantity of money, M (billions of dollars) .The y-axis is labelled, interest rate, i.2 lines are shown; MD1 and MD2.Line MD1 begins in the top left corner and slopes down to the end of the x-axis.Line MD2 follows the same slope as line MD1, but is plotted to the right.
-Refer to Figure 11.1.In the figure, the money demand curve would move from MD₁ to MD₂ if

Quizplus · Accepted Answer

An increase in real GDP would increase the demand for money, shifting the money demand curve from MD1 to MD2.

Figure 111 Alt Text for Figure 11