-Refer to Figure . It would be accurate to say that

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Quizplus · Accepted Answer

The correct statement is D because when the interest rate falls, people are less incentivized to save money, leading to an increase in the quantity demanded of real money balances for transactions and other purposes. Demand refers to the relationship between price and quantity demanded at all prices, whereas quantity demanded refers to the specific amount demanded at a particular price. In this case, a lower interest rate directly increases the quantity of real money balances people want to hold.