When the market for ___________ money is drawn with the value of money on the vertical axis and the quantity of money on the horizontal axis, the price level increases if money demand shifts _____________

Respuesta :

Answer:

money demand; leftward

Explanation:

Money demand depends upon the interest rate as well as the price level.

When the money market is been drawn with a value of the money on the [tex]\text{vertical axis}[/tex], the quantity of money demanded is increased and the price level also increases. Also the curve slopes downward. But it decreases the the money supply as well as the price level.

When the money demand shifts towards left or when the money supply shifts rightwards, the price level increases.