Figure 11.4 Alt text for Figure 11.4: In figure 11.4, a graph shows shift in money demand curve.
Long description for 11.4: The x-axis is labelled, quantity of money, M (billions of dollars) .The y-axis is labelled, interest rate, i.2 lines are shown; Money demand 1 and Money demand 2.Line Money, demand 1, begins in the top left corner and slopes down to the end of the x-axis.Line Money, demand 2, follows the same slope as line Money, demand 1, but is plotted to the right.The area between the lines Money, demand 1, and Money, demand 2, is indicated by a right pointing arrow.
-Refer to Figure 11.4.In the figure above, the money demand curve would move from Money demand₁ to Money demand₂ if

Question

Figure 11.4

Alt text for Figure 11.4: In figure 11.4, a graph shows shift in money demand curve.
Long description for 11.4: The x-axis is labelled, quantity of money, M (billions of dollars) .The y-axis is labelled, interest rate, i.2 lines are shown; Money demand 1 and Money demand 2.Line Money, demand 1, begins in the top left corner and slopes down to the end of the x-axis.Line Money, demand 2, follows the same slope as line Money, demand 1, but is plotted to the right.The area between the lines Money, demand 1, and Money, demand 2, is indicated by a right pointing arrow.
-Refer to Figure 11.4.In the figure above, the money demand curve would move from Money demand₁ to Money demand₂ if

Quizplus · Accepted Answer

The money demand curve shifts when there is a change in an economic factor that affects the quantity of money that people wish to hold at a given interest rate. An increase in the price level means that more money is needed to buy the same goods and services, thus shifting the money demand curve to the right.

Figure 114 Alt Text for Figure 11