The Demand for Money Increases and the Demand Curve for Money

question 89

Multiple Choice

The demand for money increases and the demand curve for money shifts rightward as a result of

• A) an increase in the use of credit cards.
• B) a decrease in the real interest rate.
• C) a decrease in the price level.
• D) an increase in real GDP.
• E) a decrease in the nominal interest rate.

---

Definitions:

Credits

In accounting, credits refer to an entry on the right-hand side of an account ledger, representing an increase in liability, equity accounts, or revenue, or a decrease in an asset or expense account.

Conversion

The act of changing one form of securities into another, such as converting bonds into shares of stock, or the process of changing one currency into another.

Trading Securities

Financial securities that are purchased and held primarily for sale in the near term to generate income on short-term price differences.

Unrealized Holding

A profit or loss that arises from the change in value of an investment that has not yet been sold or realized.