?

Macroeconomics

Free Version

Upgrade subject to access all content

Moderate

Effects of Prices on the Money Market

MACRO-JXGJWZ

If the general level of prices rises, then

A

the money market clears with a lower interest rate and more real money is held.

B

the money market clears with a higher interest rate and more real money is held.

C

the money market clears with a lower interest rate and less real money is held.

D

the money market clears with a higher interest rate and less real money is held.

E

It is not clear what happens to the interest rate and real money held in the money market.