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    Exam 7: Keynesian System III: Policy Effects in the Is-Lm Model
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    Figure 7-1 -According to Figure 7-1,a Decrease in the Money Stock
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Figure 7-1 -According to Figure 7-1,a Decrease in the Money Stock

Question 50

Question 50

Multiple Choice

Figure 7-1
Figure 7-1   -According to Figure 7-1,a decrease in the money stock A) lowers the interest rate to r<sub>1</sub>. B) raises the interest rate to r<sub>2</sub>. C) leaves the interest rate at r<sub>0</sub>. D) None of the above
-According to Figure 7-1,a decrease in the money stock


A) lowers the interest rate to r1.
B) raises the interest rate to r2.
C) leaves the interest rate at r0.
D) None of the above

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