-In the Figure Above, a Decrease in the Monetary Base

question 394

Multiple Choice

-In the figure above, a decrease in the monetary base would create a change such as a

• A) movement from point a to point b along the supply of money curve MS₀.
• B) movement from point b to point a along the supply of money curve MS₀.
• C) shift from the supply of money curve MS₀ to the supply of money curve MS₁.
• D) shift from the supply of money curve MS₁ to the supply of money curve MS₀.

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