Answer:
As interest rates decrease, demand for money increases.
Explanation:
The interest rate in accounting, is the amount of money a lender charges, due per period for the use of assets and expressed as a percentage of the principal sum (amount deposited or lent). It is typically calculated on an annual basis as the annual percentage rate.
The demand for money is given by the relationship between the actual amount of money an individual want to hold and all the factors that determines this amount.
Also, the relationship between interest rates and demand for money is that as interest rates decrease, demand for money increases.
This simply means, the demand for money decreases or goes down when interest rates increases or rise and the demand for money increases or goes up when interest rates decreases or fall.
