Refer to Figure 14.2 for the Following Questions

Multiple Choice

Refer to Figure 14.2 for the following questions.
Figure 14.2

-Refer to Figure 14.2. Suppose that interest rates in Australia fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?

A) Supply would decrease, demand would decrease and the economy moves from B to C to D.
B) Supply would increase, demand would decrease and the economy moves from C to B to A.
C) Supply would decrease, demand would increase and the economy moves from A to D to C.
D) Supply would increase, demand would increase and the economy moves from D to A to B.