what happens to the demand for money when interest rates rise
Therefore you can see a downward sloping. When the quantity of money demand increases(from M** to M*), the interest rate will decrease(from i* to i**). When money demand increase, for all interest rate level, the quantity of money demand will increase.Thus, the whole money demand curve shifts rightwards. It will achieve another equilibrium in money market, where the interest rate level is higher than initial equilibrium interest rate.f we draw money demand in an interest rate-amount of money demand in real terms space, i.e. y-axis is long-term interest rate while x-axis is money demand in real terms, we can see the curve of money demand is downward sloping.