-In the figure above,the decrease in the interest rate from i₁ to i₂ can be explained by A)a decrease in money growth. B)an increase in money growth. C)a decline in the expected price level. D)an increase in income.

Question

Quizplus · Accepted Answer

An increase in money growth typically leads to a decrease in interest rates because more money is available in the economy, which reduces the cost of borrowing.

-In the Figure Above,the Decrease in the Interest Rate from I1

-In the Figure Above,the Decrease in the Interest Rate from I₁