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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