A decrease in the market interest rate,other things constant,will result in:
A)a rightward shift of the money demand curve.
B)a leftward shift of the money demand curve.
C)an increase in the slope of the money demand curve.
D)a movement up along the money demand curve.
E)a movement down along the money demand curve.

Question

Quizplus · Accepted Answer

A decrease in the market interest rate will make saving less attractive, leading to a decrease in the demand for money as people will want to hold less money and more interest-bearing assets. This decrease in demand for money will result in a movement down along the money demand curve.

A Decrease in the Market Interest Rate,other Things Constant,will Result