Refer to the graph above. If the initial equilibrium interest rate was 5 percent and the money supply increased by $100 billion, then the new interest rate would be:
A) 1 percent
B) 2 percent
C) 3 percent
D) 4 percent

Question

Refer to the graph above. If the initial equilibrium interest rate was 5 percent and the money supply increased by $100 billion, then the new interest rate would be:
A) 1 percent 
B) 2 percent 
C) 3 percent 
D) 4 percent

Quizplus · Accepted Answer

The Answer of  Refer to the graph above. If the initial equilibrium interest rate was 5 percent and the money supply increased by $100 billion, then the new interest rate would be:
A) 1 percent 
B) 2 percent 
C) 3 percent 
D) 4 percent

Refer to the Graph Above