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Which of the Following Statements Is Correct

Question 13

Multiple Choice

Which of the following statements is correct?


A) An increase in prices will shift the transactions demand curve for money to the right but leave the total money demand curve unchanged.
B) A decrease in prices will shift both the transactions demand and the total money demand curves to the left.
C) A fall in real GDP will shift both the transactions demand and the total money demand curve to the right.
D) A decline in real GDP will shift the transactions demand curve to the left but leave the total money demand curve unchanged.
E) A fall in the rate of interest will shift both the asset demand and the total demand curves to the right.

Correct Answer:

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