When the Money Market Is Drawn with the Value of Money

question 234

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,if money demand shifts leftward,then initially there is an

• A)excess demand for money which causes the price level to rise.
• B)excess demand for money which causes the price level to fall.
• C)excess supply of money which causes the price level to rise.
• D)excess supply of money which causes the price level to fall.

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