Figure 11.5 Alt text for Figure 11.5: In figure 11.5, a graph shows movement in money demand curve.
Long description for Figure 11.5: The x-axis is labelled, quantity of money, M (billions of dollars).The y-axis is labelled, interest rate, i.Line MD1 begins in the top left corner and slopes down to the bottom center.Points A and B are marked along line MD1.Point A is close to the bottom of the line, and point B is close to the top of the line.
-Refer to Figure 11.5.In the figure above, a movement from point A to point B would be caused by
A)a decrease in real GDP.
B)an increase in the price level.
C)a decrease in the price level.
D)an increase in the interest rate.
E)a decrease in the interest rate.

Question

Figure 11.5  Alt text for Figure 11.5: In figure 11.5, a graph shows movement in money demand curve.
Long description for Figure 11.5: The x-axis is labelled, quantity of money, M (billions of dollars).The y-axis is labelled, interest rate, i.Line MD1 begins in the top left corner and slopes down to the bottom center.Points A and B are marked along line MD1.Point A is close to the bottom of the line, and point B is close to the top of the line.
-Refer to Figure 11.5.In the figure above, a movement from point A to point B would be caused by
A)a decrease in real GDP. 
B)an increase in the price level. 
C)a decrease in the price level. 
D)an increase in the interest rate. 
E)a decrease in the interest rate.

Quizplus · Accepted Answer

The Answer of Figure 11.5  Alt text for Figure 11.5: In figure 11.5, a graph shows movement in money demand curve.
Long description for Figure 11.5: The x-axis is labelled, quantity of money, M (billions of dollars).The y-axis is labelled, interest rate, i.Line MD1 begins in the top left corner and slopes down to the bottom center.Points A and B are marked along line MD1.Point A is close to the bottom of the line, and point B is close to the top of the line.
-Refer to Figure 11.5.In the figure above, a movement from point A to point B would be caused by
A)a decrease in real GDP. 
B)an increase in the price level. 
C)a decrease in the price level. 
D)an increase in the interest rate. 
E)a decrease in the interest rate.

Figure 115 Alt Text for Figure 11