Figure 34-2

question 6

Multiple Choice

Figure 34-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.

-Refer to Figure 34-2. Assume the money market is always in equilibrium. Under the assumptions of the model,

• A) the quantity of goods and services demanded is higher at P2 than it is at P1.
• B) the quantity of money is higher at Y1 than it is at Y2.
• C) an increase in r from r1 to r2 is associated with a decrease in Y from Y1 to Y2.
• D) All of the above are correct.

---

Definitions:

Intranet

A private network accessible only to an organization's staff, often used to share information, operational systems, or computing services within the organization.

Drag Gesture

An input method involving clicking and holding an object on a screen and then moving it to a new location.

Shortcut Menu

A contextual menu that appears when a user right-clicks on an element in a GUI, offering a list of actions relevant to the context of the click.

Mouse Buttons

The buttons on a mouse that allow users to interact with computer software; typically includes a left, a right, and sometimes a middle button.