The money demand curve has a negative slope because

A) lower interest rates cause households and firms to switch from money to financial assets.
B) lower interest rates cause households and firms to switch from financial assets to money.
C) lower interest rates cause households and firms to switch from money to stocks.
D) lower interest rates cause households and firms to switch from money to bonds.

Answer: B

Economics

You might also like to view...

Crabs caught from an ocean are an example of a _____

a. common resource b. club good c. public good d. private good

Economics

One of the characteristics of muscles is extensibility. This allows muscles to:

A. consume oxygen. B. contract. C. react to an impulse. D. stretch.

Economics