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Use the following to answer questions:
Figure: A Money Market Use the following to answer questions: Figure: A Money Market   -(Figure: A Money Market)  Look at the figure A Money Market. Holding the money supply constant, which of the following might cause the equilibrium interest rate to decrease to r<sub>1</sub>? A) The inflation rate rises to historically high levels. B) Higher payroll taxes cause employers to pay workers cash under the table. C) A recession decreases real GDP. D) There is a significant increase in the stock market.
-(Figure: A Money Market) Look at the figure A Money Market. Holding the money supply constant, which of the following might cause the equilibrium interest rate to decrease to r1?


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