Which of the Following Would Cause the Money Demand Curve

question 61

Multiple Choice

Which of the following would cause the money demand curve to shift to the left?

• A)an open market purchase of Treasury securities by the Federal Reserve
• B)an increase in the interest rate
• C)an increase in the price level
• D)a decrease in real GDP

---

Definitions:

Invests

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Note Payable

A written promise to pay a specified amount of money, along with interest, by a certain date.

Cash Payment

A transaction in which money is paid out or disbursed immediately in cash.

Fees Earned

Revenue generated from providing services, recognized when the service is performed regardless of when the payment is received.