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Refer to Figure 18

Question 85

Multiple Choice

Refer to Figure 18.2.A decrease in the discount rate would most likely result in A) A decrease in the money supply and a move from AD<sub>2</sub> to AD<sub>1</sub>. B) An increase in the money supply and a move from AD<sub>1</sub> to AD<sub>2</sub>. C) A decrease in the money supply and a move from AS<sub>2</sub> to AS<sub>1</sub>. D) An increase in the money supply and a move from AS<sub>1</sub> to AS<sub>2</sub>. Refer to Figure 18.2.A decrease in the discount rate would most likely result in


A) A decrease in the money supply and a move from AD2 to AD1.
B) An increase in the money supply and a move from AD1 to AD2.
C) A decrease in the money supply and a move from AS2 to AS1.
D) An increase in the money supply and a move from AS1 to AS2.

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