Im trying to make sense of this statement and im having a


question about real money balances and the relationship with real interest rates.

"When the interest rate rises, people hold less of their wealth in the form of money, and when the interest rate is low, they hold more money"
I'm trying to make sense of this statement, and I'm having a hard time. Why do increased interest rates mean that people hold less wealth in the form of money?

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Macroeconomics: Im trying to make sense of this statement and im having a
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