-In the above figure, a movement from point A to point B can be explained by
A) an decrease in the quantity of money in circulation.
B) a decrease in the real value of cash balances.
C) the decrease in interest rates.
D) the increase in exports to the foreign sector.

Question

-In the above figure, a movement from point A to point B can be explained by
A) an decrease in the quantity of money in circulation. 
B) a decrease in the real value of cash balances. 
C) the decrease in interest rates. 
D) the increase in exports to the foreign sector.

Quizplus · Accepted Answer

A movement from point A to point B, in the context of money and interest rates, typically indicates a decrease in the real value of cash balances, which can occur due to inflation or other factors affecting purchasing power.

-In the Above Figure, a Movement from Point a to Point