Economy, asked by itooba80, 2 months ago

Discuss the effect of an increase in the price level on the money demand.

Answers

Answered by Taran98185

0

Answer:

Changes in the price level (inflation or deflation)

When there is an increase in the price level, the demand for money increases. Conversely, when there is a decrease in the price level, the demand for money decreases.

Answered by LovelyFuzzie

1

Answer:

When there is an increase in the price level, the demand for money increases. Conversely, when there is a decrease in the price level, the demand for money decreases.

Hope it helps you!

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