When the Nominal Interest Rate Increases, the

question 114

Multiple Choice

When the nominal interest rate increases, the

• A) quantity of money demanded increases and there is a movement upward along the demand for money curve.
• B) quantity of money demanded decreases and there is a movement upward along the demand for money curve.
• C) demand for money increases and the demand for money curve shifts rightward.
• D) demand for money decreases and the demand for money curve shifts leftward.
• E) supply of money curve shifts rightward.

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