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Figure 34-4

Question 171

Multiple Choice

Figure 34-4.On the figure,MS represents money supply and MD represents money demand. Figure 34-4.On the figure,MS represents money supply and MD represents money demand. -Refer to Figure 34-4.Which of the following events could explain a decrease in the equilibrium interest rate from r<sub>1</sub> to r<sub>3</sub>? A) a decrease in the price level B) a decrease in the number of firms building new factories and buying new equipment C) an increase in the price level D) an increase in the number of firms building new factories and buying new equipment
-Refer to Figure 34-4.Which of the following events could explain a decrease in the equilibrium interest rate from r1 to r3?


A) a decrease in the price level
B) a decrease in the number of firms building new factories and buying new equipment
C) an increase in the price level
D) an increase in the number of firms building new factories and buying new equipment

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