-Which line in the above graph would best reflect the slope of the asset demand for money curve?
A) line 1
B) line 2
C) line 3
D) line 4

Question

-Which line in the above graph would best reflect the slope of the asset demand for money curve?
A) line 1 
B) line 2 
C) line 3 
D) line 4

Quizplus · Accepted Answer

The asset demand for money curve is downward sloping, meaning that as the interest rate increases, the quantity of money demanded decreases. Line 1 is the only line that is downward sloping, so it is the best reflection of the slope of the asset demand for money curve.

-Which Line in the Above Graph Would Best Reflect the Slope