When the money market is drawn with the value of money on the vertical axis,as the price level decreases,the value of money
A)increases,so the quantity of money demanded increases.
B)increases,so the quantity of money demanded decreases.
C)decreases,so the quantity of money demanded decreases.
D)decreases,so the quantity of money demanded increases.

Question

Quizplus · Accepted Answer

As the price level decreases, the value of money increases, leading to a decrease in the quantity of money demanded because people need less money to buy the same amount of goods and services.

When the Money Market Is Drawn with the Value of Money