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Shifts in the Money Demand Curve

Shift of the Demand Curve

Shift of the Demand Curve

The graph shows both the supply and demand curve, with quantity of money on the x-axis (Q) and the price of money as interest rates on the y-axis (P). When the quantity of money demanded increase, the price of money (interest rates) also increases, and causes the demand curve to increase and shift to the right. A decrease in demand would shift the curve to the left.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Supply-and-demand."
    http://en.wikipedia.org/wiki/File:Supply-and-demand.svg Wikipedia GNU FDL.

Related Terms

  • asset
  • nominal interest rate
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