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Figure 34-4

Question 86

Multiple Choice

Figure 34-4.On the figure,MS represents money supply and MD represents money demand. Figure 34-4.On the figure,MS represents money supply and MD represents money demand. -Refer to Figure 34-4.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 34-4.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

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