When credit card fees decrease, the demand for physical money tends to __________, resulting in a leftward shift of the money demand curve and influencing nominal interest rates.

When credit card fees decrease, using credit cards becomes cheaper and more appealing for people. As a result, fewer people need to hold physical money, like cash, because they can use their cards for purchases instead. This change shows up as a leftward shift in the money demand curve, meaning that at every interest rate, people want to hold less cash. With less demand for physical money, nominal interest rates may decrease, as banks have more money available to lend. For example, if a person usually carries $100 in cash but switches to using credit cards because of lower fees, they might only carry $20, reducing the overall demand for cash.