Figure 7. Money market Interest rate. R Real money supply R- Aggregate real money demand, L(RY) R G 1 02 M o pl=0") Roal monoy holdings 1) a positive relationship between the interest rate and the quantity of money that households and firms are willing to hold. 2) a negative relationship between the interest rate and the quantity of money that households and firms are willing to hold. 3) that changes in the interest rate do not affect the quantity of money that households and firms are willing to hold. 4) when the interest decreases, the quantity of money that households and firms are willing to hold increases