Why Is the Asset Demand for Money Curve Downward-Sloping

Multiple Choice

Why is the asset demand for money curve downward-sloping?

A) As the interest rate increases,the opportunity cost of holding money also increases.
B) As the interest rate increases,the opportunity cost of holding money decreases.
C) As the interest rate increases,so too do bond prices.
D) It becomes more attractive to hold money as the interest rate increases.
E) As people hold larger quantities of money,the interest rate is forced down.