When the nominal interest rate falls, there is
A)a leftward shift of the demand for money curve.
B)an upward movement along the demand for money curve.
C)a rightward shift of the demand for money curve.
D)a downward movement along the demand for money curve.
E)no movement along the demand for money curve and the curve does not shift.

Question

Quizplus · Accepted Answer

When the nominal interest rate falls, people are more inclined to hold money rather than invest it, leading to a downward movement along the demand for money curve as the quantity of money demanded increases.

When the Nominal Interest Rate Falls, There Is