What happens to the demand for money as?

Question

a. the price level rises

b. the availabilit of credit rises

exlain

Answer 1

Obviously the demand for money will rise also. We are heading for something that could be a massive crisis.

Looks like world war.

Answer 2

a.  increases...higher prices mean you need more money to buy thing and thus the demand for money must increase.

b.  decreases if you are able to use credit, you need less money and thus your demand for money must decrease.

Answer 3

I think this question is intended to be demand for a particular level of the money supply.   As prices rise, more money is required to serve the same number of customers, in the same markets, so A would cause an increase in demand.

When availability of credit rises, lenders loosen their requirements or drop their rates, both of which spur economic activity, which increases the demand for money

Answer 4

There is always a demand for money, even if it is only Wednesday.

However it is always as well to remember that when it is night time in Italy it's Wednesday over here.