If nominal interest rates rise, what will happen to demand for money?
A)It will increase.
B)It will decrease.
C)Nothing; the economy will move to a new quantity demanded at a new interest rate.
D)It depends on what happens to other determinants of demand for money like prices or income.

Question

If nominal interest rates rise, what will happen to demand for money?​
A)​It will increase.
B)​It will decrease.
C)​Nothing; the economy will move to a new quantity demanded at a new interest rate.
D)​It depends on what happens to other determinants of demand for money like prices or income.

Quizplus · Accepted Answer

The Answer of If nominal interest rates rise, what will happen to demand for money?​
A)​It will increase.
B)​It will decrease.
C)​Nothing; the economy will move to a new quantity demanded at a new interest rate.
D)​It depends on what happens to other determinants of demand for money like prices or income.

If Nominal Interest Rates Rise, What Will Happen to Demand