Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 4

Curve D a slopes downward because:
A) lower interest rates increase the opportunity cost of holding money.
B) lower interest 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.