Which of the following statements is correct? a. A fall in the rate of interest will shift both the asset demand and the total demand curves to the right. b. A fall in real GDP will shift both the transactions demand and the total money demand curve to the right. c. A decline in real GDP will shift the transactions demand curve to the left but leave the total money demand curve unchanged. d. An increase in prices will shift the transactions demand curve for money to the right but leave the total money demand curve unchanged.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter15: Monetary Theory And Policy
Section: Chapter Questions
Problem 2.3P
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Which of the following statements is correct?
a.
A fall in the rate of interest will shift both the asset demand and the total demand curves to the right.
b.
A fall in real GDP will shift both the transactions demand and the total money demand curve to the right.
c.
A decline in real GDP will shift the transactions demand curve to the left but leave the total money demand curve unchanged.
d.
An increase in prices will shift the transactions demand curve for money to the right but leave the total money demand curve unchanged.
e.
A decrease in prices will shift both the transactions demand and the total money demand curves to the left.
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