Demand for money in the money market is _____, while in the loanable funds market to demand for money is ____.

To clarify the concepts of the demand for money, we can break down the definitions as follows:

1. Demand for Money in the Money Market: In the money market, the demand for money refers to the desire to hold liquid assets, such as cash. This demand is generally considered to be negatively related to the interest rate; as interest rates rise, the demand for money typically decreases since individuals prefer to invest to earn more returns.

2. Demand for Money in the Loanable Funds Market: In the loanable funds market, the demand for money relates to the borrowing needs of individuals and businesses. Here, the demand for money is influenced by interest rates as well; typically, a lower interest rate encourages more borrowing, leading to a higher demand for loanable funds, which can include loans for consumption, investment, or other purposes.

In conclusion, the statement can be filled in as follows:

Demand for money in the money market is negatively related to interest rates, while in the loanable funds market, the demand for money is positively related to interest rates.