The demand curve for money, expressed with the value of money on
the vertical axis and the nominal quantity of money on the horizontal
axis, is a rectangular hyperbola
1. because the real quantity of money
demanded is independent of the price level.
2. because the value of money is the reciprocal
of the price level.
3. because the real quantity of money demanded
depends upon only a limited number of factors such as real income and
the interest rate.
4. for none of the above reasons.
Choose the correct option.