Interest rates are the price paid for the use of money and as interest rates fall the quantity demanded of money increases.

Group of answer choices

False, the quantity demanded is independent of the interest rate and determined only by GDP.

True, although the transactions demand stays constant, the asset demand quantity will rise.

True, transactions demand is downward sloping and shows that quantity increases as rates decrease.

False, when interest rates rise the quantity demanded will increase because the opportunity cost is also increasing.