When the money market is drawn with the value of money on the vertical axis,

Name: When the money market is drawn with the value of money on the vertical axis,
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Question

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The money demand curve slopes downward because as the value of money increases (i.e., interest rates increase), people demand less money because it costs more to borrow. On the other hand, money supply is horizontal because it is controlled by the central bank and does not fluctuate based on interest rates.

When the Money Market Is Drawn with the Value of Money