Answer to Question #231287 in Macroeconomics for Prisca Mahlalela

Question

The demand curve for money will shift to the left if: 

I. Real GDP increases. 

II. Real GDP decreases. 

III. The interest rate increases. 

IV. The interest rate decreases.

A. Only (II) is correct.

B. (II) and (III) are correct.

C. (I) and (IV) are correct.

D. (II) and (IV) are correct.

Answer 1

The correct answer is D.(II) and (IV) are correct.