Everything else remaining unchanged, if the price level in a country doubles, the quantity of money demanded
A)declines.
B)is unchanged.
C)doubles.
D)can increase or decline depending on the population of the concerned country.

Question

Quizplus · Accepted Answer

When the price level in a country doubles, the quantity of money demanded typically doubles as well. This is because people will need twice as much money to buy the same amount of goods and services at the new, higher prices, assuming the velocity of money and real output remain constant.

Everything Else Remaining Unchanged, If the Price Level in a Country