The nominal money demand curve will shift to the right if the price level decreases the...
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The nominal money demand curve will shift to the right if the price level decreases the nominal interest rate decreases consumption decreases real income increases the nominal interest rate increases With asset diversification all 'eggs are put in one basket' for maximum return money is used as a unit of account it may be possible to reduce risk without reducing expected return portfolio losses can be prevented holding more assets is always better than holder fewer The nominal money demand curve will shift to the right if the price level decreases the nominal interest rate decreases consumption decreases real income increases the nominal interest rate increases With asset diversification all 'eggs are put in one basket' for maximum return money is used as a unit of account it may be possible to reduce risk without reducing expected return portfolio losses can be prevented holding more assets is always better than holder fewer
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