If real GDP decreases, the
A) demand for money increases.
B) demand for money decreases.
C) quantity of money demanded increases.
D) supply of money decreases.
E) supply of money increases.

Question

Quizplus · Accepted Answer

When real GDP decreases, this typically means that there is less economic activity and therefore less demand for goods and services. As a result, individuals and businesses will have less need for money to make purchases, leading to a decrease in demand for money.

If Real GDP Decreases, the