Economy, asked by adnanali1219, 1 year ago

Explain why the money demand curve is a downward sloping curve

Answers

Answered by khushboo41
2
money demand curve is downward sloping due to inverse relationships between demand for money n rate of interest .
as we know that there is inverse relationship between price n demand so price increases then demand will decrease and vice versa .
that's why rate of interest increases then demand for money will decrease n vice versa.
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