[Note: The distance between cities in California (US) distance chart below is straight line distance (may be called as flying or air distance) between the two locations in California (US) calculated based on their latitudes and longitudes. This distance may be very much different from the actual travel distance.]
Price of Related Goods: Demand for the given commodity is also affected by change in prices of the related goods. Related goods are of two types: (i) Substitute Goods: Substitute goods are those goods which can be used in place of one another for satisfaction of a particular want, like tea and coffee.
But if the increase in the supply exceeds the increase in demand, the interest rate falls. Short-Run Effects of Money on Real GDP and the Price Level 15. T Higher interest rates ripple through the econ-omy, affecting many sectors.63 11 MONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL* Key Concepts The Demand for Money Four factors influence the demand for money: â¦ The price level â An increase in the price level in-creases the nominal demand for money.