Higher interest rates tend to increase the demand for money.

Name: Higher interest rates tend to increase the demand for money.
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Question

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Higher interest rates mean that borrowing money becomes more expensive, which can decrease the demand for money as people may be less inclined to borrow. On the other hand, higher interest rates on savings accounts and other investments may encourage people to save more, which would lead to an increase in the supply of money.

Higher Interest Rates Tend to Increase the Demand for Money