If you were going to write a function for money demand, you would say that the demand for money holdings:

Question

Quizplus · Accepted Answer

The demand for money holdings varies inversely with the nominal interest rate because as the interest rate increases, the opportunity cost of holding money increases, leading individuals to hold less money. The demand for money holdings also varies directly with nominal income as an increase in income leads to an increase in transactions, leading individuals to hold more money to conduct these transactions.

If You Were Going to Write a Function for Money