The money demand curve will shift to the left if:
A) the nominal interest rate increases.
B) the nominal interest rate decreases.
C) price level increases.
D) real income decreases.

Name: The money demand curve will shift to the left if: A) the nominal interest rate increases. B) the nominal interest rate decreases. C) price level increases. D) real income decreases.
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Question

Quizplus · Accepted Answer

A decrease in real income reduces the transactions demand for money, shifting the money demand curve to the left.

The Money Demand Curve Will Shift to the Left If