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An increase in the price level will have no impact on the money demand curve inc

ID: 1119092 • Letter: A

Question

An increase in the price level will

have no impact on the money demand curve

increase the quantity of money people want to hold

shift the money demand curve to the left

shift the money demand curve to the right

decrease the quantity of money people want to hold

A.

have no impact on the money demand curve

B.

increase the quantity of money people want to hold

C.

shift the money demand curve to the left

D.

shift the money demand curve to the right

E.

decrease the quantity of money people want to hold

Explanation / Answer

Answer : An increase in the price level will Shift the money demand curve to the right because as the GDP has been increased in the economy which result in an economic development and demand for money increase resulted in increase in the price level.

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