Refer to the information provided in Figure 10.1 below to answer the questions that follow. Figure 10.1
-Refer to Figure 10.1. A movement from Point D to Point E can be caused by
A) a decrease in the interest rate.
B) an increase in nominal income.
C) a decrease in nominal income.
D) an increase in the interest rate.

Question

Refer to the information provided in Figure 10.1 below to answer the questions that follow.  Figure 10.1
-Refer to Figure 10.1. A movement from Point D to Point E can be caused by
A) a decrease in the interest rate. 
B) an increase in nominal income. 
C) a decrease in nominal income. 
D) an increase in the interest rate.

Quizplus · Accepted Answer

A movement from Point D to Point E suggests a decrease in nominal income, which would shift the demand curve for money to the left, reducing the quantity of money demanded at each interest rate.

Refer to the Information Provided in Figure 10