The money demand curve,against possible levels of interest rates,has a
A)positive slope.
B)negative slope.
C)zero slope.
D)positive slope for low levels of money demand,a negative slope for high levels of money demand.

Question

Quizplus · Accepted Answer

The money demand curve has a negative slope. This is because as interest rates increase, the opportunity cost of holding money also increases, leading to a decrease in the demand for money. Conversely, as interest rates decrease, the opportunity cost of holding money decreases, leading to an increase in the demand for money. Therefore, the curve slopes downward.

The Money Demand Curve,against Possible Levels of Interest Rates,has a