When the demand for money is shown on a graph,the __________ is on the vertical axis,and the __________ is on the horizontal axis.
A)quantity of money; interest rate
B)interest rate; quantity of money
C)real GDP; quantity of money
D)nominal GDP; quantity of money
E)price level; quantity of money

Question

Quizplus · Accepted Answer

The demand for money is typically shown as an inverse relationship between the interest rate and the quantity of money demanded. The interest rate is therefore typically shown on the vertical axis and the quantity of money on the horizontal axis.

When the Demand for Money Is Shown on a Graph,the