Exhibit: Market for Real Money Balances 
Based on the graph, if the interest rate is r3, then people will _____ bonds, and the interest rate will _____.
A) sell; rise
B) sell; fall
C) buy; rise
D) buy; fall
Correct Answer:
Verified
Q42: Exhibit: Market for Real Money Balances
Q44: The theory of liquidity preference states that
Q48: According to the theory of liquidity preference,
Q49: Exhibit: Market for Real Money Balances
Q50: Changes in fiscal policy shift the:
A) LM
Q58: Along an IS curve all of the
Q63: In the liquidity preference model, what adjusts
Q67: If the interest rate is above the
Q71: A decrease in the real money supply,
Q72: A decrease in the nominal money supply,
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