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In the market for money demand is upward sloping and supply is downward sloping demand is...

In the market for money

demand is upward sloping and supply is downward sloping

demand is vertical and supply is upward sloping

demand is downward sloping and supply is vertical

demand is downward sloping and supply is upward sloping
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Answer #1

The correct answer is 'Option C'.

The money demand curve is downward sloping which illustrates the relationship between interest rate and demand of money. As interest rate rises, the money demand falls and vice versa. The money supply curve shows the quantity of money supplied at given interest rate. The money supply curve is vertical as money supply does not depend on the rate of interest. So, the money supply curve is vertical. Therefore, the correct answer is 'Option C'.

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