When the Money Market Is Depicted in a Diagram with the Value

Multiple Choice

When the money market is depicted in a diagram with the value of money on the vertical axis, which statement best describes the money demand function?

A) It slopes upward because at higher prices people want to hold more money.
B) It slopes downward because at higher prices people want to hold more money.
C) It slopes downward because at higher price people want to hold less money.
D) It slopes upward because at higher prices people want to hold less money.