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Author Question: Refer to the information provided in Figure 25.1 below to answer the question(s) that follow. Refer ... (Read 89 times)

Kthamas

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  • Posts: 546

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 
A to Point 
C can be caused by


◦ a decrease in nominal income.
◦ an increase in nominal income.
◦ a decrease in the interest rate.
◦ 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 
A to Point 
D can be caused by


◦ a decrease in nominal income.
◦ an increase in the interest rate.
◦ a decrease in the interest rate.
◦ an increase in nominal income.


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jasonq

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Answer 1

an increase in the interest rate.

Answer 2

an increase in nominal income.



Lisaclaire

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  • Posts: 569

Question 1

Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.










Refer to Figure 25.1. The money demand curve will shift from
  to 
 if


◦ the price level increases.
◦ nominal income decreases.
◦ interest rates fall.
◦ interest rates rise.

Question 2

Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.










Refer to Figure 25.1. The movement from 
A to 
B could be caused by


◦ a decrease in the interest rate.
◦ an increase in the interest rate.
◦ a decrease in nominal income.
◦ an increase in the price level.



HandsomeMarc

  • Sr. Member
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  • Posts: 360

Answer 1

nominal income decreases.

Answer 2

a decrease in the interest rate.





 

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