When the Money Market Is Depicted in a Graph with the Value

question 2

Multiple Choice

When the money market is depicted in a graph with the value of money on the vertical axis, as the price level increases, what happens to the value of money?

• A) It increases, so the quantity of money demanded increases.
• B) It increases, so the quantity of money demanded decreases.
• C) It decreases, so the quantity of money demanded decreases.
• D) It decreases, so the quantity of money demanded increases.

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