Refer to the information provided in Figure 11.3 below to answer the questions that follow.
Figure 11.3
-Refer to Figure 11.3.An increase in the money supply,ceteris paribus,will likely

Question

Refer to the information provided in Figure 11.3 below to answer the questions that follow.
  Figure 11.3
-Refer to Figure 11.3.An increase in the money supply,ceteris paribus,will likely

Quizplus · Accepted Answer

According to the diagram, an increase in the money supply will shift the money supply curve to the right. This will cause the equilibrium interest rate to decrease and equilibrium money holdings to increase. Therefore, the correct choice is C.

Refer to the Information Provided in Figure 11