The Demand for Money Curve Is Drawn

question 7

Multiple Choice

The demand for money curve is drawn

• A) holding several things constant, including GDP and interest rates.
• B) holding several things constant, including the price level and interest rates.
• C) with interest rates on the horizontal axis, and the curve sloping up since the "price" of holding money varies directly with the interest rate.
• D) with interest rates on the vertical axis and the curve sloping down since lower interest rates mean the "price" of holding money has fallen.

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