The Demand for Money Curve Is in the Figure Above

question 173

Multiple Choice

The demand for money curve is in the figure above.
-A movement from point B to point C could be the result of

• A) a fall in the nominal interest rate.
• B) a decrease in the total benefit from holding money.
• C) an increase in the quantity of money held by banks.
• D) a rise in the real interest rate.
• E) a rise in the real interest rate matched by an equal fall in the nominal interest rate.

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