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

Question

Quizplus · Accepted Answer

An increase in the price level decreases the value of money, leading to a higher quantity of money demanded, which results in a movement to the right along the money demand curve.

When the Money Market Is Drawn with the Value of Money