Multiple Choice
-Refer to figure above to answer this question.What is the effect of an increase in the supply of money from 160 to 200?
A) An increase of 4 percentage points in the interest rate.
B) A decrease in the transactions demand for money.
C) A decrease of 40 in investment spending.
D) An increase of 40 in investment spending.
E) An increase of 20 in investment spending.
Correct Answer:

Verified
Correct Answer:
Verified
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