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  3. Study Set
    Principles of Macroeconomics Study Set 8
  4. Exam
    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
  5. Question
    Figure 34-5
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Figure 34-5

Question 10

Question 10

Multiple Choice

Figure 34-5.On the figure,MS represents money supply and MD represents money demand. Figure 34-5.On the figure,MS represents money supply and MD represents money demand.   -Refer to Figure 34-5.A shift of the money-demand curve from MD<sub>1</sub> to MD<sub>2</sub> could be a result of A) a decrease in taxes. B) an increase in government spending. C) an increase in the price level. D) All of the above are correct.
-Refer to Figure 34-5.A shift of the money-demand curve from MD1 to MD2 could be a result of


A) a decrease in taxes.
B) an increase in government spending.
C) an increase in the price level.
D) All of the above are correct.

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