Which of the following is not assumed to be constant along a money demand curve?
A)The price level
B)The interest rate
C)Real GDP
D)Nominal GDP
E)Individual's tastes and preferences

Question

Quizplus · Accepted Answer

The interest rate is the variable that changes along the money demand curve, as it represents the cost of holding money instead of investing it. The other options are assumed to be constant for the purpose of analyzing the demand for money.

Which of the Following Is Not Assumed to Be Constant