-In the Above Figure, Suppose the Economy Is Initially on the Demand

Multiple Choice

-In the above figure, suppose the economy is initially on the demand for money curve MD₁. What is the effect of an increase in real GDP?

A) The demand for money curve would shift rightward to MD₂.
B) The demand for money curve would shift leftward to MD₀.
C) There would be a movement upward along the demand for money curve MD₁.
D) There would be a movement downward along the demand for money curve MD₁.