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O the money demand curve to shift up to keep the interest rate constan

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In order for the long-run neutrality of money to hold, an increase in money supply must cause:
O the money demand curve to shift upwards enough to raise the interest rate,
the money demand curve to shift up to keep the interest rate constant.
the money demand curve to shift down to keep the interest rate constant.
the money demand curve to shift downwards enough to lower the interest rate.

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