Author Question: Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to ... (Read 172 times)

D2AR0N · **on:** Jun 29, 2018

Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if

A) the price level increased. B) real GDP decreased.
C) the interest rate decreased. D) the Federal Reserve sold Treasury securities.

Question 2

Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve. As a result,

A) both the equilibrium price and quantity of DVD players will decrease.
B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease.
C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will decrease.
D) the equilibrium price of DVD players will increase; the equilibrium quantity may increase or decrease.