Refer to the information provided in Figure 11.3 below to answer the questions that follow.
Figure 11.3
-Refer to Figure 11.3.A decrease in the money supply and an increase in nominal aggregate output will,for sure,

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.A decrease in the money supply and an increase in nominal aggregate output will,for sure,

Quizplus · Accepted Answer

A decrease in the money supply reduces the amount of money available, which tends to increase interest rates. An increase in nominal aggregate output increases the demand for money, also pushing interest rates up. Both factors lead to an increase in the equilibrium interest rate.

Refer to the Information Provided in Figure 11