Refer to the Information Provided in Figure 10

Multiple Choice

Refer to the information provided in Figure 10.2 below to answer the questions that follow. Figure 10.2
-Refer to Figure 10.2. Suppose money demand is currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely

A) decrease the quantity of money demanded from $200 million to $100 million.
B) increase the quantity of money demanded from $100 million to $200 million.
C) increase the quantity of money demanded from $100 million to $150 million.
D) increase the quantity of money demanded from $150 million to $300 million.