When Does the Demand for Money Curve to Shift to the Left

question 60

Multiple Choice

When does the demand for money curve to shift to the left?

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

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Definitions:

Tax Cut

A reduction in the amount of taxes imposed by a government, aiming to stimulate economic growth or achieve other policy objectives.

Disposable Income

After income taxes are taken out, disposable income represents the funds available to a household or individual for saving and spending purposes.

APS

Average Propensity to Save, which is the fraction of total income that is saved by an economy or individual.

Income

The financial gain received by an individual or entity, usually in the form of wages, salaries, or returns from investments.