Because an increase in the nominal interest rate raises the opportunity costs of holding money, the money demand curve:
A)shifts to the right.
B)shifts to the left.
C)slopes upward.
D)slopes downwarD.

Question

Quizplus · Accepted Answer

An increase in the nominal interest rate raises the opportunity cost of holding money, leading people to hold less money, which causes the money demand curve to slope downward.

Because an Increase in the Nominal Interest Rate Raises the Opportunity