All of the following shift the demand for money curve EXCEPT
A) an increase in the price level.
B) an improvement in financial technology.
C) a rise in the nominal interest rate.
D) a decrease in real GDP.
E) an increase in real GDP.

Question

Quizplus · Accepted Answer

A rise in the nominal interest rate does not shift the demand for money curve; instead, it moves along the curve because the interest rate is the cost of holding money, affecting the quantity of money demanded at a given point on the demand curve.

All of the Following Shift the Demand for Money Curve