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

Question 394

Multiple Choice

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


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

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