FIGURE 27-2
-Refer to Figure 27-2. Starting at equilibrium E0, an increase in the supply of money will result in the
A) shift of the MS curve to the left and an increase in the interest rate.
B) shift of the MS curve to the right and a fall in the interest rate.
C) downward movement along the MD curve and a higher interest rate.
D) shift of the MD curve to the left and a fall in the interest rate.
E) upward movement along the MD curve and a lower interest rate.
Correct Answer:
Verified
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