-In the above figure, the economy is initially at point B. If the Fed decreases the quantity of money, there is
A) a movement to point C.
B) a movement to point A.
C) a shift to AD2.
D) a shift to AD1.

Question

-In the above figure, the economy is initially at point B. If the Fed decreases the quantity of money, there is
A) a movement to point C. 
B) a movement to point A. 
C) a shift to AD2. 
D) a shift to AD1.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, the economy is initially at point B. If the Fed decreases the quantity of money, there is
A) a movement to point C. 
B) a movement to point A. 
C) a shift to AD2. 
D) a shift to AD1.

-In the Above Figure, the Economy Is Initially at Point