Principles of Macroeconomics / Unit 12 MAC 1110 short lesson, about 20 seconds
The Money Demand Curve
Captions available
The idea
The three motives together give a demand curve for money: the quantity people want to hold at each interest rate, everything else unchanged. It slopes downward.
In practice
This is the law of demand with the interest rate serving as the price.
Where people slip
A change in the interest rate moves along this curve; it does not shift it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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