In the keynesian model?

Tubdul07

6 years ago

A is the right answer.
The demand for money is inversely related to the rate of interest i.e the higher the rate of interest,the lower the demand for money and vice-versa.

mine224

1 year ago

The answer is A.
I was almost convinced by your wrong answer

PuertoSans

9 years ago

Option A is the right answer.

OseisKate

3 years ago

Option A is correct in the sense that
If people would pay high interest when returning loans, they would be discouraged to collect more loans (demand money). i.e paying interest of #8000 for #10000 loan. that is a ripoff.