Figure 30-2

question 129

Multiple Choice

Figure 30-2. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
-Refer to Figure 30-2. Which of the following events could explain a shift of the money-demand curve from MD1 to MD2?

• A) an increase in the value of money
• B) a decrease in the price level
• C) an open-market purchase of bonds by the Federal Reserve
• D) None of the above is correct.

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