Refer to the Information Provided in Figure 11

question 84

Multiple Choice

Refer to the information provided in Figure 11.5 below to answer the questions that follow. Figure 11.5
-Refer to Figure 11.5.If the money supply decreases from to ,

• A)money demand must increase for the money market to return to equilibrium.
• B)the interest rate will fall to 4%.
• C)the interest rate will increase to 6%.
• D)the money market will return to equilibrium only if the money supply is decreased to its original level.

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