If there is a significant decrease in the demand for money due to increased consumer credit use, what would be the most likely effect on nominal interest rates in the short term?

When there is a significant decrease in the demand for money, it means that people and businesses are not needing to hold onto cash as much because they are using credit more. This change leads to an increase in the amount of money available in the market because people are borrowing instead of saving. When there is more money available, banks have more funds to lend, which typically causes nominal interest rates to decrease. For example, if many consumers start using credit cards for purchases instead of paying with cash, banks may lower their interest rates to encourage borrowing. Therefore, in the short term, we would likely see nominal interest rates fall as the demand for money decreases.