-Refer to Figure 14-6

question 38

Multiple Choice

-Refer to Figure 14-6.Suppose the Fed increases the money supply (to .As a result,the interest rate falls initially to 6 percent.After spending and GDP change,what will happen to the interest rate?

• A) It will remain at 6 percent.
• B) It will rise as the money supply curve shifts back toward
• C) It will rise as the money demand curve shifts to the right.
• D) It will fall as the money supply curve shifts farther to the right.
• E) It will fall as the money demand curve shifts to the left.

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