Answer to Question #163696 in Macroeconomics for Awais

Question

What is implied about the relationship between money and interest rate when money is made the independent variable - that is when the demand for money function is inverted?

Answer 1

Answer to Task#163696

This suggests that when quantity of money demanded increases, it will lead to an increase in the interest rates.

And when the people reduces their demand for money, the interest rates will be forced to lower.