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The Figure Given Below Shows the Interest Rate on the Vertical

Question 34

Multiple Choice

The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis. In this figure, an increase in the price level will cause a movement from:
The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis. In this figure, an increase in the price level will cause a movement from: A) point B to point A. B) point A to point B. C) DM to DM'. D) DM to DM*. E) point E to point F.


A) point B to point A.
B) point A to point B.
C) DM to DM'.
D) DM to DM*.
E) point E to point F.

Correct Answer:

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