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Figure 17-2

Question 114

Multiple Choice

Figure 17-2. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes. Figure 17-2. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes. -Refer to Figure 17-2. 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) an increase in the value of money B) a decrease in the price level C) an open-market purchase of bonds by the Federal Reserve D) None of the above is correct.
-Refer to Figure 17-2. Which of the following events could explain a shift of the money-demand curve from MD1 to MD2?


A) an increase in the value of money
B) a decrease in the price level
C) an open-market purchase of bonds by the Federal Reserve
D) None of the above is correct.

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