Which of the following will tend to occur when the interest rate increases?

Name: Which of the following will tend to occur when the interest rate increases?
Brand: Quizplus
Rating: 4.7 (47 reviews)

Question

Quizplus · Accepted Answer

When the interest rate increases, it becomes more costly to borrow money, leading to a decrease in the quantity of money demanded. This results in a leftward movement along the demand for money curve, indicating a decrease in the quantity of money demanded at each interest rate. Therefore, option (D) is the correct answer.

Which of the Following Will Tend to Occur When the Interest