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Figure 14.6 -Refer to Figure 14.6. If the Money Supply Increases from Increases

Question 99

Multiple Choice

Figure 14.6 -Refer to Figure 14.6. If the money supply increases from A) the money market will return to equilibrium only if the money supply is reduced to its original level. B) the interest rate will decrease to 6%. C) money demand must decrease for the money market to return to equilibrium. D) the interest rate will increase to 10%. Figure 14.6
-Refer to Figure 14.6. If the money supply increases from Figure 14.6 -Refer to Figure 14.6. If the money supply increases from A) the money market will return to equilibrium only if the money supply is reduced to its original level. B) the interest rate will decrease to 6%. C) money demand must decrease for the money market to return to equilibrium. D) the interest rate will increase to 10%.

A) the money market will return to equilibrium only if the money supply is reduced to its original level. Figure 14.6 -Refer to Figure 14.6. If the money supply increases from A) the money market will return to equilibrium only if the money supply is reduced to its original level. B) the interest rate will decrease to 6%. C) money demand must decrease for the money market to return to equilibrium. D) the interest rate will increase to 10%.
B) the interest rate will decrease to 6%.
C) money demand must decrease for the money market to return to equilibrium.
D) the interest rate will increase to 10%.