-Refer to the Graph Above to Answer This Question

Multiple Choice

-Refer to the graph above to answer this question.Why is the money demand curve MD downward-sloping?

A) The transactions demand for money is downward-sloping.
B) There is a direct relationship between bond prices and interest rates.
C) The asset demand for money is downward-sloping.
D) Because of the wealth or real-balances effect.
E) The opportunity cost of holding money increases as the interest rates decreases.