Refer to the information provided in Figure 10.2 below to answer the questions that follow. Figure 10.2
-Refer to Figure 10.2. Suppose the money demand is currently at Point B. A movement to Point A could be caused by
A) a decrease in the interest rate.
B) a decrease in nominal income.
C) an increase in the interest rate.
D) an increase in nominal income.

Question

Refer to the information provided in Figure 10.2 below to answer the questions that follow.  Figure 10.2
-Refer to Figure 10.2. Suppose the money demand is currently at Point B. A movement to Point A could be caused by
A) a decrease in the interest rate. 
B) a decrease in nominal income. 
C) an increase in the interest rate. 
D) an increase in nominal income.

Quizplus · Accepted Answer

A movement from Point B to Point A on a money demand curve typically indicates a decrease in nominal income, which reduces the demand for money at each interest rate level.

Refer to the Information Provided in Figure 10