Multiple Choice
Figure 16-4. On the figure, MS represents money supply and MD represents money demand.
-Refer to Figure 16-4. Suppose the current equilibrium interest rate is r3. Which of the following events would cause the equilibrium interest rate to decrease?
A) The Federal Reserve increases the money supply.
B) Money demand decreases.
C) The price level decreases.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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