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

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. The movement from A to B could be caused by
A) a decrease in the interest rate. 
B) an increase in the interest rate. 
C) a decrease in nominal income. 
D) an increase in the price level.

Quizplus · Accepted Answer

A decrease in the interest rate typically leads to an increase in investment and consumption, causing a rightward shift in the demand curve, which is represented by the movement from point A to point B.

Refer to the Information Provided in Figure 10