Question

The money demand curve will shift when there is a change in

Answer 1

The demand for money shifts out when the nominal level of output increases. ... When the quantity of money demanded increase, the priceof money (interest rates) also increases, and causes the demand curve to increase and shift to the right. A decrease in demand would shift thecurve to the left.

Answer 2

The demand for money shiftsout when the nominal level of output increases.When the quantity of money demanded increase, the price of money(interest rates) also increases, and causes the demand curveto increase and shift to the right. A decrease in demand would shift the curve to the left.


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