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Refer to the Market for Money Diagram Below

Question 148

Multiple Choice

Refer to the market for money diagram below.Other things being equal, if the Bank of Canada increases the stock of money, the: Refer to the market for money diagram below.Other things being equal, if the Bank of Canada increases the stock of money, the:   A) S curve would shift leftward and the equilibrium interest rate would rise. B) S curve would shift rightward and the equilibrium interest rate would fall. C) D would shift leftward and the equilibrium interest rate would fall. D) S curve would shift rightward, but the effect on the equilibrium interest rate would be uncertain.


A) S curve would shift leftward and the equilibrium interest rate would rise.
B) S curve would shift rightward and the equilibrium interest rate would fall.
C) D would shift leftward and the equilibrium interest rate would fall.
D) S curve would shift rightward, but the effect on the equilibrium interest rate would be uncertain.

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