Figure 4.3 -In Figure 4.3, 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)only A and B of the above.

Question

Quizplus · Accepted Answer

A decrease in interest rate can be caused by an increase in money growth, as more money in the economy leads to lower interest rates.

Figure 4.3 -In Figure 4.3, the Decrease in the Interest Rate from Rate