Which of the following is correct?
A)A higher price level shifts money demand rightward.
B)When money demand shifts rightward,the interest rate rises.
C)A higher interest rate reduces the quantity of goods and services demanded.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A higher price level increases money demand, shifting it rightward, which can lead to higher interest rates. Higher interest rates typically reduce the quantity of goods and services demanded.

Which of the Following Is Correct