The demand for money curve is the relationship between and , other things remaining the same.
A) the money demanded; the money supplied
B) the quantity of money demanded; the real interest rate
C) the quantity of real money demanded; the interest rate
D) the quantity of real money demanded; the quantity of real money supplied

Question

Quizplus · Accepted Answer

The demand for money curve represents the relationship between the quantity of real money demanded (measured in purchasing power) and the interest rate, other things remaining the same. Real money demand is the amount of money people desire to hold in their wallets, bank accounts, or other forms of financial assets to purchase goods and services. The interest rate is the cost of borrowing or the opportunity cost of holding money, implying that the higher the interest rate, the lower the demand for money, and vice versa.

The Demand for Money Curve Is the Relationship Between and