How Does the Demand for Money Vary with Price Level

question 28

Multiple Choice

How does the demand for money vary with price level and real GDP?  

• A) directly with the price level, and directly with the level of real GDP 
• B) inversely with the price level, and directly with the level of real GDP 
• C) directly with the price level, and inversely with the level of real GDP 
• D) inversely with the price level, and directly with the level of real GDP