-Refer to the above information.All else equal,the transaction demand for money in this table would increase if:
A) nominal GDP increased.
B) the interest rate fell.
C) the supply of money increased.
D) the supply of money decreased.

Question

-Refer to the above information.All else equal,the transaction demand for money in this table would increase if:
A) nominal GDP increased. 
B) the interest rate fell. 
C) the supply of money increased. 
D) the supply of money decreased.

Quizplus · Accepted Answer

The transaction demand for money is directly related to nominal GDP. As nominal GDP increases, more money is needed for transactions, thus increasing the transaction demand for money.

-Refer to the Above Information