Which of the Following Statements Is Correct? Other Things Equal

question 203

Multiple Choice

Which of the following statements is correct? Other things equal,

• A) a decline in real output will shift both the transactions demand curve for money and the total money demand curve to the right.
• B) a decline in the interest rate will shift the asset demand curve for money to the right but leave the total money demand curve unchanged.
• C) deflation will shift both the transactions demand curve for money and the total money demand curve to the left.
• D) inflation will shift the transactions demand curve for money to the right but leave the total money demand curve unchanged.

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