Figure 16-2

Multiple Choice

Figure 16-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.

-Refer to Figure 16-2. If the graphs apply to an economy such as the U.S. economy, then the slope of the AD curve is primarily attributable to the

A) wealth effect.
B) interest-rate effect.
C) exchange-rate effect.
D) Fisher effect.