Refer to Figure 11.2. Suppose that the Quantity of money demanded is currently at Point B. A movement to Point D could be caused by A) an increase in income, ceteris paribus B) a decrease in the interest rate, ceteris paribus C) a decrease in the price level, ceteris paribus D) an increase in the price level, ceteris paribus

ENGR.ECONOMIC ANALYSIS
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Refer to Figure 11.2. Suppose that the Quantity of money demanded is currently at Point B. A movement to Point D could be caused by
A) an increase in income, ceteris paribus
B) a decrease in the interest rate, ceteris paribus
C) a decrease in the price level, ceteris paribus
D) an increase in the price level, ceteris paribus 

Interest rate (%)
Figure 11.2
7%A B
5%
C
f
D
100 150 200 300
Money ($ million)
M₂
-M₁
Transcribed Image Text:Interest rate (%) Figure 11.2 7%A B 5% C f D 100 150 200 300 Money ($ million) M₂ -M₁
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