When the money market is depicted in a diagram with the value of money on the vertical axis, in which situation does the price level decrease?
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 means that each unit of money can buy more goods and services than before, indicating a decrease in the price level.

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