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

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

 

 

Answer:

option D

As the real GDP falls money demand will shift leftwards.

Asked on February 15, 2018 in economics.
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