Multiple Choice
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 decrease in the equilibrium interest rate from r3 to r1?
A) a decrease in the price level
B) a decrease in the number of firms building new factories and buying new equipment
C) an increase in the price level
D) an increase in the number of firms building new factories and buying new equipment
Correct Answer:
Verified
Correct Answer:
Verified
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