If the demand for money increases,
A)the interest rate will fall
B)there will be a movement downward along the money demand curve
C)there will be a movement upward (to the left)along the money demand curve
D)there will be a rightward shift of the money demand curve
E)there will be a leftward shift of the money demand curve

Question

Quizplus · Accepted Answer

An increase in the demand for money results in a rightward shift of the money demand curve, indicating that at each interest rate, more money is demanded.

If the Demand for Money Increases