Asked by Meghan Millay on Mar 10, 2024

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The demand for money is a downward sloping line that depicts the relationship between the price level and the opportunity cost of holding money.

Demand for Money

The desire to hold cash or easily liquidated financial instruments for transactions, precautionary, or speculative motives.

Opportunity Cost

The cost attributed to the refusal of the immediately lesser appealing option during decision-making.

  • Identify the role of money demand and how it shifts in different economic situations.
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A

Answered By Askgram User

Mar 10, 2024

Final Answer :
False
Explanation :
The demand for money is a downward sloping line that depicts the relationship between the interest rate (opportunity cost of holding money) and the quantity of money demanded, not the price level and opportunity cost.