Macroeconomics 20th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 3

Curve D a , slopes downward because:
Ainterest rates increase the opportunity cost of holding money.
Binterest rates reduce the opportunity cost of holding money.
C) the asset demand for money varies directly (positively) with the interest rate.
D) the transactions-demand-for-money curve is perfectly vertical.