According to the Demand for Money (Md) curve above, as the rate of interest falls, demand for money:
A)Decreases rapidly
B)Plateaus
C)Increases
D)Decreases slowly

Question

Quizplus · Accepted Answer

As the rate of interest falls, demand for money increases.
Key Takeaway: A Demand for Money (Md) curve plots the rates of interest against demand for money. In the above curve, the relationship illustrated shows that as the rate of interest falls, demand for money increases.

According to the Demand for Money (Md) Curve Above, as the Rate