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-In the Above Figure, Suppose the Economy Is Initially on the Demand

Question 384

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-In the above figure, suppose the economy is initially on the demand for money curve MD<sub>1</sub>. What is the effect of a rise in the interest rate? A) The demand for money curve would shift rightward to MD<sub>2</sub>. B) There would be a movement upward along the demand for money curve MD<sub>1</sub>. C) There would be a movement downward along the demand for money curve MD<sub>1</sub>. D) The demand for money curve would shift leftward to MD<sub>0</sub>.
-In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of a rise in the interest rate?


A) The demand for money curve would shift rightward to MD2.
B) There would be a movement upward along the demand for money curve MD1.
C) There would be a movement downward along the demand for money curve MD1.
D) The demand for money curve would shift leftward to MD0.

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