Question 1
Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.
Refer to Figure 25.1. A movement from Point
D to Point
A can be caused by
◦ a decrease in the interest rate.
◦ an increase in nominal income.
◦ a decrease in nominal income.
◦ an increase in the interest rate.
Question 2
Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.
Refer to Figure 25.1. A movement from Point
B to Point
A can be caused by
◦ a decrease in nominal income.
◦ an increase in the price level.
◦ a decrease in the interest rate.
◦ an increase in the interest rate.