The Money Demand Curve Will Shift to the Left If

question 96

Multiple Choice

The money demand curve will shift to the left if:

• A)the nominal interest rate increases.
• B)the nominal interest rate decreases.
• C)the price level increases.
• D)the price level decreases.

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Definitions:

Multiply

To increase in number by a specific factor; in arithmetic, it is the operation of adding a number to itself a certain number of times.

Decimal

A figure that features a decimal point to signify a part of a whole.

Round

To approximate a number to a specified degree of significance, often to the nearest whole number.

Whole Number

A number without fractions or decimals; an integer.