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This Question: 2 pts 29 of 62 (44 comp At higher interest rates the O A. quantity of money demanded is lower. O B. quantity of money demanded is higher. O C. money supply is indeterminate. O D. money supply is higher. Click to select your answer
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Option A
At higher interest rate the quantity of money demanded is higher because the opportunity cost of money increases and there is less benefit to keep the money for transaction purposes as well as there is little or no incentive to invest.
Money supply is independent of the interest rate because it is controlled by the Fed because of that is it vertical.

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