Use the following to answer questions :
Exhibit: Market for Real Money Balances 
-(Exhibit: Market for Real Money Balances) Based on the graph, if the interest rate is r1, then people will ______ bonds and the interest rate will ______.
A) sell; rise
B) sell; fall
C) buy; rise
D) buy; fall
Correct Answer:
Verified
Q69: According to the theory of liquidity preference,
Q70: An LM curve shows combinations of:
A) taxes
Q71: A decrease in the real money supply,
Q72: A decrease in the nominal money supply,
Q73: A decrease in the price level, holding
Q75: Reducing the money supply _ nominal interest
Q76: According to the theory of liquidity preference,
Q77: Use the following to answer questions :
Exhibit:
Q78: The LM curve, in the usual case:
A)
Q79: According to the theory of liquidity preference,
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