When the money market is drawn with the value of money on the vertical axis,as the price level increases the quantity of money
A)demanded increases.
B)demanded decreases.
C)supplied increases.
D)supplied decreases.

Question

Quizplus · Accepted Answer

As the price level increases, the real value of money decreases, which makes people demand more money to maintain their purchasing power.

When the Money Market Is Drawn with the Value of Money