Which of the Following Would Cause the Money Demand Curve

question 49

Multiple Choice

Which of the following would cause the money demand curve to shift to the left?

• A) An increase in interest rates
• B) Inflation
• C) A technological advance
• D) An increase in GDP

---

Definitions:

Profit-Maximizing

The process or strategy undertaken by a firm to achieve the highest possible profit from its operations, considering factors like pricing, production, and cost management.

Labor Demand Curve

A downward-sloping curve that represents how the quantity of labor demanded by employers changes as the wage rate changes.

Purely Competitive

Purely competitive markets are those in which numerous small firms compete against each other, and the price of goods or services is determined by the market with no single participant having significant control over it.

Imperfectly Competitive

Describes markets where individual sellers have some control over the prices due to lack of perfect competition, includes monopolistic competition, oligopoly, and monopoly markets.