Use the Following to Answer Questions

question 132

Multiple Choice

Use the following to answer questions .
Exhibit: Effects of Monetary Policy
-(Exhibit: Effects of Monetary Policy) The shift in the demand for bonds from D₁ to D₂, in Panel (b) will result in a

• A) lower interest rate and no change in investment.
• B) higher interest rate and lower investment.
• C) lower interest rate and higher investment.
• D) higher interest rate and higher investment.

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