Other things being equal, an increase in the rate of interest causes a(n): a. rightward shift of the demand for money curve. b. leftward shift of the demand for money curve. c. downward movement along the demand for money curve. d. upward movement along the demand for money curve.

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29-04-2022
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Other things being equal, an increase in the rate of interest causes a(n): a. rightward shift of the demand for money curve. b. leftward shift of the demand for money curve. c. downward movement along the demand for money curve. d. upward movement along the demand for money curve.

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suchetasVT suchetasVT · Answer 1 · 2022-05-05T16:47:08+02:00

Other things being equal, an increase in the rate of interest causes an upward movement along with the demand for money curve.

What is Demand curve?

In economics, a demand curve is a graph that shows the relationship between the price of a commodity and the value of that asset in that price.

Interest rates reflect borrowing costs to finance investment projects. Other things being equal, as interest rates rise, it becomes more expensive to fund investment projects.

Thus, the correct option is d. upward movement along with the demand for money curve.

learn more about demand curve here:

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