When the money market is drawn with the value of money on the vertical axis,a decrease in the price level causes a
A)movement to the right along the money demand curve.
B)movement to the left along the money demand curve.
C)shift to the right of the money supply curve.
D)shift to the left of the money supply curve.

Question

Quizplus · Accepted Answer

A decrease in the price level increases the real value of money, which leads to a decrease in the demand for money. This is represented by a movement to the left along the money demand curve.

When the Money Market Is Drawn with the Value of Money