6) Refer to Figure 11.1. Suppose the Quantity of money demanded is currently at Point A. decrease in the interest rate to 5%, ceteris paribus, will likely A) increase the quantity of money demanded from $100 million to $150 million. B) increase the quantity of money demanded from $150 million to $300 million. C) decrease the quantity of money demanded from $200 million to $100 million. D) increase the quantity of money demanded from $100 million to $200 million.
6) Refer to Figure 11.1. Suppose the Quantity of money demanded is currently at Point A. decrease in the interest rate to 5%, ceteris paribus, will likely A) increase the quantity of money demanded from $100 million to $150 million. B) increase the quantity of money demanded from $150 million to $300 million. C) decrease the quantity of money demanded from $200 million to $100 million. D) increase the quantity of money demanded from $100 million to $200 million.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A
7%
D
5%
- M
- M
100 150 200 300
Money ($ million)
Interest rate (%)

Transcribed Image Text:26) Refer to Figure 11.1. Suppose the Quantity of money demanded is currently at Point A.
decrease in the interest rate to 5%, ceteris paribus, will likely
A) increase the quantity of money demanded from $100 million to $150 million.
B) increase the quantity of money demanded from $150 million to $300 million.
C) decrease the quantity of money demanded from $200 million to $100 million.
D) increase the quantity of money demanded from $100 million to $200 million.
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