Use the figure below to answer the following questions.
Figure 10.2.1
-Refer to Figure 10.2.1.Which graph illustrates the effect of a decrease in the quantity of money?
A)a only
B)b only
C)c only
D)d only
E)Both b and d

Question

Use the figure below to answer the following questions.
  Figure 10.2.1
-Refer to Figure 10.2.1.Which graph illustrates the effect of a decrease in the quantity of money?
A)a only 
B)b only 
C)c only 
D)d only 
E)Both b and d

Quizplus · Accepted Answer

Graph d shows a decrease in the quantity of money as there is a leftward shift of the money supply curve. This results in an increase in the interest rate and a decrease in output. Graphs a, b, and c do not illustrate the effect of a decrease in the quantity of money.

Use the Figure Below to Answer the Following Questions