An increase in the price level causes
A)the money demand curve to shift to the left.
B)the money demand curve to shift to the right.
C)a movement up along the money demand curve.
D)a movement down along the money demand curve.

Question

Quizplus · Accepted Answer

An increase in the price level increases the amount of money people want to hold for transactions, which shifts the money demand curve to the right.

An Increase in the Price Level Causes