Which of the Following Changes Will Shift the Money Demand

question 145

Multiple Choice

Which of the following changes will shift the money demand curve leftward?

• A)An increase in the price level
• B)An increase in real GDP
• C)A decrease in the nominal interest rate
• D)An increase in the nominal interest rate
• E)A decrease in real GDP

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Definitions:

Demand Schedule

A table that shows the quantity of goods or services that consumers are willing and able to purchase at various prices.

Nonprice Competition

A strategy used by businesses to attract customers through methods other than price, like quality, service, and brand reputation.

Product Promotion

Activities undertaken to inform potential customers about a product or service, encouraging its purchase.

Real Characteristics

Essential and tangible attributes or features of goods, services, or economic conditions that can be measured and evaluated.