Solved

Figure 21-4

Question 161

Multiple Choice

Figure 21-4. On the figure, MS represents money supply and MD represents money demand. Figure 21-4. On the figure, MS represents money supply and MD represents money demand. -Refer to Figure 21-4. Which of the following events could explain a shift of the money-demand curve from MD<sub>1</sub> to MD<sub>2</sub>? A) a decrease in the price level B) a decrease in the cost of borrowing C) an increase in the price level D) an increase in the cost of borrowing
-Refer to Figure 21-4. Which of the following events could explain a shift of the money-demand curve from MD1 to MD2?


A) a decrease in the price level
B) a decrease in the cost of borrowing
C) an increase in the price level
D) an increase in the cost of borrowing

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q11: Which of the following policy actions shifts

Q26: Paul Samuelson, a famous economist, said that<br>A)"the

Q33: According to liquidity preference theory,<br>A)an increase in

Q65: Suppose investment spending falls.To offset the change

Q65: An increase in government spending on goods

Q66: Most economists believe that fiscal policy<br>A)only affects

Q73: An increase in the MPC<br>A)increases the multiplier,so

Q76: Liquidity preference refers directly to Keynes' theory

Q160: Which of the following sequences best

Q162: In a certain economy, when income is