When the Market for Money Is Drawn with the Value

question 64

Multiple Choice

When the market for money is drawn with the value of money on the vertical axis and the quantity of money on the horizontal axis, the money demand curve slopes

• A)upward, because at higher prices people want to hold more money.
• B)downward, because at higher prices people want to hold more money.
• C)downward, because at higher price people want to hold less money.
• D)upward, because at higher prices people want to hold less money.

---

Definitions:

Market Demand

The total quantity of a product or service that is desired by all potential consumers in a market at various price levels.

Competitive Industry

An industry landscape where multiple firms compete against each other, often leading to innovation and lower prices for consumers.

Competitive Industry

A market sector characterized by many firms competing against each other for customers, leading to innovation and lower prices.

Market Demand

The total quantity of a particular good or service that all consumers in a market are willing and able to purchase at various prices.