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9 September, 15:14

If interest rates increase from 8% to 9½%, we would expect to see an

increase in the demand for money. a decrease in the demand for money.

an increase in the quantity of money demanded.

a decrease in the quantity demanded of money.

no change in the demand for money.

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Answers (1)
  1. 9 September, 15:45
    0
    a decrease in the demand for money

    Explanation:

    As the money is now more expensive because, holding cash in hand means not capitalize with the interest, the agents (families and business) will try to not have liquid money but, invest to achieve the better yields.
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