?

AP® Macroeconomics

Free Version

Upgrade subject to access all content

Moderate

Facts About Money Demand

APMACR-VRA1OG

Which of the following statements is NOT a true statement about money demand?

A

As nominal interest rates increase, money demand of a person (or group of people) increases.

B

Money demand refers to the amount of wealth that a person (or group of people) want to hold as money.

C

One of the reasons people demand money is to use as a medium of exchange.

D

An increase in inflation will tend to increase money demand in an economy.

E

An increase in the money supply will tend to increase the quantity of money demanded in an economy.