The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis. In this figure, an increase in the interest rate will cause a movement from:

A) point B to point A.
B) point A to point B.
C) DM to DM'.
D) DM to DM*.
E) point E to point D.

Question

The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis. In this figure, an increase in the interest rate will cause a movement from:

A) point B to point A. 
B) point A to point B. 
C) DM to DM'. 
D) DM to DM*. 
E) point E to point D.

Quizplus · Accepted Answer

The Answer of The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis. In this figure, an increase in the interest rate will cause a movement from:

A) point B to point A. 
B) point A to point B. 
C) DM to DM'. 
D) DM to DM*. 
E) point E to point D.

The Figure Given Below Shows the Interest Rate on the Vertical