Answer:
The correct answer is letter "D": nominal interest rate; hold.
Step-by-step explanation:
The demand of money refers to the amount of money people prefer to hold in cash instead of investment vehicles or assets. The demand for money is proportional to individuals' income and the interest rate. According to this approach, when the interest rates are higher, people prefer to invest. When interest rates fall, people prefer to hold cash.
Therefore, the demand for money explains the relationship between the quantity of real money demanded and the nominal interest rate that people prefer to keep, remaining the same all other factors that influence the amount of money.