FIGURE 27-2 Refer to Figure 27-2

question 43

Multiple Choice

FIGURE 27-2 Refer to Figure 27-2.Starting at equilibrium E₀,an increase in the supply of money will result in the

• A)shift of the M_S curve to the left and an increase in the interest rate.
• B)shift of the M_S curve to the right and a fall in the interest rate.
• C)downward movement along the M_D curve and a higher interest rate.
• D)shift of the M_D curve to the left and a fall in the interest rate.
• E)upward movement along the M_D curve and a lower interest rate.

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