-In the figure above, the decrease in the interest rate from i₁ to i₂ can be explained by ________.
A)a decrease in money growth
B)an increase in money growth
C)a decline in the expected price level
D)an increase in income

Question

-In the figure above, the decrease in the interest rate from i₁ to i₂ can be explained by ________.
A)a decrease in money growth 
B)an increase in money growth 
C)a decline in the expected price level 
D)an increase in income

Quizplus · Accepted Answer

An increase in money growth typically leads to a decrease in interest rates as more money becomes available in the economy, reducing the cost of borrowing.

-In the Figure Above, the Decrease in the Interest Rate