If the opportunity cost of holding money rises, then the money demand curve shifts to the left.

Name: If the opportunity cost of holding money rises, then the money demand curve shifts to the left.
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Question

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When the opportunity cost of holding money rises, it means that the interest rates are higher, making holding money less attractive compared to other investments. This does not shift the money demand curve but moves along the curve, as people will want to hold less money at any given interest rate.

If the Opportunity Cost of Holding Money Rises, Then the Money