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question 57

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Use the following to answer questions:
Figure: Money Market I Use the following to answer questions: Figure: Money Market I   -(Figure: Money Market I)  Refer to Figure: Money Market I. If the money market is initially in equilibrium at point E and the central bank buys Treasury bills, then the interest rate will: A)  move toward rH. B)  move toward rL. C)  remain at rE. D)  shift leftward.
-(Figure: Money Market I) Refer to Figure: Money Market I. If the money market is initially in equilibrium at point E and the central bank buys Treasury bills, then the interest rate will:


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