The Market Demand Curve for Money Is

question 12

Multiple Choice

The market demand curve for money is

• A)Vertical because it is a fixed amount regardless of changes in the interest rate.
• B)Horizontal because it is determined by the individual.
• C)Upward-sloping to the right because people wish to hold more money at higher interest rates and less money at lower interest rates.
• D)Downward-sloping to the right because people wish to hold less money at higher interest rates and more money at lower interest rates.