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In 2007, Interest Rates in Germany Were 4

Question 517

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In 2007, interest rates in Germany were 4.7 percent while the inflation rate was 1.7 percent. In 2008, interest rates increased to 5.3 percent and the inflation rate increased to 2.0. As a result, there is


A) a leftward shift in Germany's demand for money curve.
B) a downward movement along Germany's demand for money curve.
C) a rightward shift in Germany's money supply curve.
D) an upward movement along Germany's demand for money curve.

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