On a graph where the interest rate is plotted on the vertical axis and the quantity of money on the horizontal axis, what happens to the quantity of money demanded when the interest rate rises?

Explanation

When the interest rate goes up, holding everything else constant, the opportunity cost of holding money increases. As a result, people reduce the amount of money they want to hold, leading to a decrease in the quantity of money demanded. This is a movement along the demand curve, not a shift in demand.