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Figure 14.5 -Refer to Figure 14.5. If the Money Supply Decreases from Decreases

Question 121

Multiple Choice

Figure 14.5 -Refer to Figure 14.5. If the money supply decreases from A) the market interest rate will fall to 6%. B) the money market will return to equilibrium only if the money supply is decreased to its original level. C) the market interest rate will increase to 10%. D) money demand must increase for the money market to return to equilibrium. Figure 14.5
-Refer to Figure 14.5. If the money supply decreases from Figure 14.5 -Refer to Figure 14.5. If the money supply decreases from A) the market interest rate will fall to 6%. B) the money market will return to equilibrium only if the money supply is decreased to its original level. C) the market interest rate will increase to 10%. D) money demand must increase for the money market to return to equilibrium.

A) the market interest rate will fall to 6%. Figure 14.5 -Refer to Figure 14.5. If the money supply decreases from A) the market interest rate will fall to 6%. B) the money market will return to equilibrium only if the money supply is decreased to its original level. C) the market interest rate will increase to 10%. D) money demand must increase for the money market to return to equilibrium.
B) the money market will return to equilibrium only if the money supply is decreased to its original level.
C) the market interest rate will increase to 10%.
D) money demand must increase for the money market to return to equilibrium.