When interest rates rise,?

Question

Possible Answers:
-the money demand curve shifts leftward.
-there is an upward and leftward movement along the money demand curve.
-the money demand curve shifts rightward.
-there is a downward and rightward movement along the money demand curve.

Answer 1

Actually, interest rates are the equivalent of the price of money, so, if price goes up, quantity demanded will go down, so it will be an upward and leftward movement along the money demand curve.

Answer 2

Some good advice about economics- the money demand curve does not have to be downwards sloping. If you consider an IS-LM framework, it is upwards sloping. You should specify what is on the axes first before you ask a question about contractions along a demand curve. However, there will always be a shift in a money demand curve if interest rates rise, as the opportunity cost of holding money goes up, and the overall demand for money goes down, not just the quantity of money demanded.

Answer 3

there is an upward and leftward movement along the money demand curve.

Answer 4

THE MONEY DEMAND CURVE SHIFTS upward and leftward movement along the money demand curve.

Answer 5

No, there are savings debts that pay the speed of inflation or more beneficial, you basically ought to seek for them, there are different possibilities for savers to make investments, in the inventory market and so on, purchase a 2d homestead to enable out and so on. there's a unusual type of human who demands low activity at the same time as they have a private loan in spite of the undeniable fact that the very 2d that's paid off start up preying for prime expenditures of activity - a touch i'm all correct Jack, sod each body else! expenditures of activity at the prompt are not basically used to penalise or reward human being savers or borrowers, the major function is to maintain the upward thrust of the monetary equipment to the convenience of anybody - if expenditures of activity do bypass up too quickly or too severe the monetary equipment as an finished suffers and shrinks, the tax take is going down and funding in public amenities that both savers and borrowers require conflict through even more beneficial. and that is the monetary corporation of england's duty i'm both a borrower and a saver, by ability of searching after my funds I actually have a savings activity price that beats both inflation and my personal loan, sure I even ought to purchase round, sure I even ought to exhibit screen what's happening and bypass my money round. yet as i visit favor my savings in retirement that's my duty to finish that.

Answer 6

Three correct answers in a row! You guys are good.