Suppose That We Are at a Point on the Money

Multiple Choice

Suppose that we are at a point on the money demand schedule where (M/P) = 500.At a constant interest rate,the quantity of money demanded increases when real income ________ so that ________.

A) rises,the money demand schedule shifts to the right
B) rises,the money demand schedule shifts to the left
C) rises,we move downward along the money demand schedule
D) falls,the money demand schedule shifts to the left
E) falls,we move upward along the money demand schedule