When the money market is depicted in a diagram with the value of money on the vertical axis, in which situation does the value of money increase?
A) if either money demand or money supply shifts right
B) if either money demand or money supply shifts left
C) if money demand shifts right or money supply shifts left
D) if money demand shifts left or money supply shifts right

Question

Quizplus · Accepted Answer

When money demand increases (shifts right) or money supply decreases (shifts left), it leads to an increase in the value of money. This is because higher demand for money or lower supply of it makes money more valuable.

When the Money Market Is Depicted in a Diagram with the Value