As nominal Gross Domestic Product (GDP) rises, the transactions demand for money
A) decreases, and the money demand curve shifts to the left.
B) remains constant, and the money demand curve remains the same.
C) increases, and the money demand curve shifts to the left.
D) increases, and the money demand curve shifts to the right.
D
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If a foreign exchange speculator expects the spot rate of the dollar nine months from today to be lower than today's forward rate on the dollar for delivery in nine months, she may
A) buy dollars in the spot market nine months from today. B) sell dollars in the spot market nine months from today. C) sell dollars forward today and buy them in the spot market nine months from today. D) buy dollars forward today and resell them in the spot market nine months from today.
Which of the following is least likely to increase the demand for new tires?
a. a decrease in the price of tires b. a decrease in the price of cars c. an increase in consumer income d. an increase in the number of miles people drive per year