Nominal interest rate (percent per year) 8 MS MD .6 9 1.2 1,5 Money (trillions of dollars) In the above figure, if the interest rate is 2 percent per year, the because interest rate will change; the quantity of money demanded is less than the quantity of money supplied O supply of money curve will shift; the quantity of money demanded is greater than the quantity of money supplied interest rate will change; the quantity of money demanded is greater than the quantity of money supplied O demand for money curve will shift; the quantity of money demanded is less than the quantity of money supplied demand for money curve will shift; the quantity of money demanded is greater than the quantity of money supplied