If real GDP decreases,there is
A)a rightward shift of the demand for money curve.
B)no movement along the demand for money curve and the curve does not shift.
C)an upward movement along the demand for money curve and no shift of the curve.
D)a leftward shift of the demand for money curve.
E)a downward movement along the demand for money curve and no shift of the curve.

Question

Quizplus · Accepted Answer

A decrease in real GDP leads to a decrease in the demand for money as people and firms have lower income and spend less. This results in a leftward shift of the demand for money curve.

If Real GDP Decreases,there Is