Answer to Question #193785 in Macroeconomics for Refiloe Lenwati

Question

If national income increases from R150 billion to R200 billion, the money demand for transaction purpose will ______ and the demand curve for money will______. [1] decrease; make a leftward shift [2] increase; remain the same [3] cannot be determined; remain the same [4] increase; make a rightward shift 

Answer 1

[4] increase; make a rightward shift.