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

Question

Quizplus · Accepted Answer

When the price level rises, the real value of money decreases, making people demand more money to hold the same amount of real wealth. This leads to a rightward shift of the demand for money curve.

If the Price Level Rises, There Is