Chapter 28, Problem 2MCQ

To determine

Factor which will decrease the money for demand.

Explanation of Solution

In simple words, the shift along the demand curve occurs when there is an increase or decrease in the price of a commodity. In this question, if there is a rise in the interest rate, it will lead to a decrease in the demand for money since it will be expensive to hold the money as one have to return a greater amount of interest.

Thus, from the above, we can conclude that the correct answer is A.