Figure 34-3.
-Refer to Figure 34-3.What quantity is represented by the downward-sloping line on the left-hand graph?
A)the supply of money
B)the demand for money
C)the rate of inflation
D)Aggregate Demand.

Question

Figure 34-3. 
-Refer to Figure 34-3.What quantity is represented by the downward-sloping line on the left-hand graph?
A)the supply of money 
B)the demand for money 
C)the rate of inflation 
D)Aggregate Demand.

Quizplus · Accepted Answer

The downward-sloping line on the left-hand graph represents the demand for money. As the interest rate increases, the demand for money decreases since people are less likely to borrow or hold money at higher interest rates.

Figure 34-3. -Refer to Figure 34-3.What Quantity Is Represented by the Downward-Sloping