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Exhibit 20-6  Money, Investment and Product Markets in Exhibit 20-6

question 224

Multiple Choice

Exhibit 20-6  Money, investment and product markets Exhibit 20-6  Money, investment and product markets   In Exhibit 20-6, a move from MS<sub>1</sub> to MS<sub>2</sub>: A)  increases the money supply, causing the interest rate to rise from i<sub>2</sub> to i<sub>1</sub>. B)  increases the money supply, causing the interest rate to fall from i<sub>1</sub> to i<sub>2</sub>. C)  decreases the money supply, causing the interest rate to rise from i<sub>2</sub> to i<sub>1</sub>. D)  decreases the money supply, causing the interest rate to fall from i<sub>1</sub> to i<sub>2</sub>. E)  has no effect on the money supply or the interest rate. In Exhibit 20-6, a move from MS1 to MS2:


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