An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
A) IS; right
B) IS; left
C) MP; left
D) MP; right

Question

Quizplus · Accepted Answer

An autonomous increase in money demand, other things being equal, would lead to a higher interest rate for any given level of income. This is represented by a leftward shift in the monetary policy (MP) curve, as it reflects tighter monetary conditions.

An Autonomous Increase in Money Demand, Other Things Equal, Shifts