Why did real money demand rise much more than real GDP?

Real money demand often rises more than real GDP due to factors like increased transaction needs and heightened precautionary motives among individuals and businesses. During periods of economic uncertainty or inflationary expectations, people tend to hold more cash as a safeguard against potential financial instability. Additionally, financial innovation and the growth of electronic payments can lead to a greater demand for liquidity, further amplifying the divergence between real money demand and GDP growth.