A rise in the price level causes the demand for money to ________ and the demand curve to shift to the ________.
A) decrease; right
B) decrease; left
C) increase; right
D) increase; left

Question

Quizplus · Accepted Answer

A rise in the price level increases the amount of money people need to carry out transactions, leading to an increase in the demand for money. This is represented by a shift of the demand curve to the right.

A Rise in the Price Level Causes the Demand for Money