Multiple Choice
In the figure given below panel A represents money market equilibrium, panel B represents investment demand, and panel C represents equilibrium real GDP. Figure 13.3 
Refer to Figure 13.3.Other things equal, if the interest rate is greater than 6 percent, then:
A) investment spending will be greater than $500 billion.
B) the equilibrium level of real GDP will increase.
C) the equilibrium level of real GDP will decrease.
D) the money demand curve will shift downward to the left.
E) the equilibrium price level will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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