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-In the Figure Above, a Decrease in the Monetary Base

Question 394

Multiple Choice

-In the figure above, a decrease in the monetary base would create a change such as a A) movement from point a to point b along the supply of money curve MS<sub>0</sub>. B) movement from point b to point a along the supply of money curve MS<sub>0</sub>. C) shift from the supply of money curve MS<sub>0</sub> to the supply of money curve MS<sub>1</sub>. D) shift from the supply of money curve MS<sub>1</sub> to the supply of money curve MS<sub>0</sub>.
-In the figure above, a decrease in the monetary base would create a change such as a


A) movement from point a to point b along the supply of money curve MS0.
B) movement from point b to point a along the supply of money curve MS0.
C) shift from the supply of money curve MS0 to the supply of money curve MS1.
D) shift from the supply of money curve MS1 to the supply of money curve MS0.

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