In 2009, the interest rate fell below 1 percent in the United States.As a result, there was a
A) leftward shift in the supply of money curve.
B) rightward shift in the demand for money curve.
C) movement downward along the demand for money curve.
D) movement upward along the demand for money curve.
E) movement upward along the money supply curve.

Question

Quizplus · Accepted Answer

When the interest rate falls, there is a movement downward along the demand for money curve, as people are more willing to hold money rather than invest it at lower interest rates.

In 2009, the Interest Rate Fell Below 1 Percent in the United