What would happen if only money demand decreases in an economy? Is there will be any change in unemployment rate?

Question

Will the unemployment rate increase due to a decrease in demand for money???

Answer 1

If money demand decreases, then not too many people will possess money.  Money is needed to buy goods and services.  If no one is buying, then the seller will not make any money, thus putting him/her out business along with his/her partners.  The economy will go down because business will go down.  This will also increase the unemployment rate, since the people depend on existing businesses for jobs.