Multiple Choice
-Which of the following phrases best describes Figure ?
A) The demand for real money balances has increased as the interest rate has fallen.
B) The supply of real money balances has increased and the interest rate has fallen.
C) The supply of real money balances has decreased and the interest rate has fallen.
D) The interest rate has decreased, causing an increase in the supply of real money balances
Correct Answer:
Verified
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