e. Indicate which curves and equilibrium interest rate show the impact of an increase in the total demand for money with no change in the money supply. Rate ofinterest, 1 B (percent) 0 E A 5 1 2 Amount of money demanded and supplied D O In the graph above this can be seen as a shift of curve 4 leftward to curve 3 and the resulting new equilibrium is E. O In the graph above this can be seen as a shift of curve 1 rightward to curve 2 and the resulting new equilibrium is A. O In the graph above this can be seen as a shift of curve 2 leftward to curve 1 and the resulting new equilibrium is B. In the graph above this can be seen as a shift of curve 3 rightward to curve 4 and the resulting new equilibrium is D. O In the graph above this can be seen as a shift of curve 1 rightward to curve 2 as well as a shift of curve 3 rightward to curve 4 and the resulting new equilbrium is C.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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e. Indicate which curves and equilibrium interest rate show the impact of an increase in the total demand for money with no change in
the money supply.
Rate ofinterest, 1
B
(percent)
0
E
A
5
1 2
Amount of money demanded and supplied
D
O In the graph above this can be seen as a shift of curve 4 leftward to curve 3 and the resulting new equilibrium is E.
O In the graph above this can be seen as a shift of curve 1 rightward to curve 2 and the resulting new equilibrium is A.
O In the graph above this can be seen as a shift of curve 2 leftward to curve 1 and the resulting new equilibrium is B.
In the graph above this can be seen as a shift of curve 3 rightward to curve 4 and the resulting new equilibrium is D.
O In the graph above this can be seen as a shift of curve 1 rightward to curve 2 as well as a shift of curve 3 rightward to curve 4
and the resulting new equilbrium is C.
Transcribed Image Text:e. Indicate which curves and equilibrium interest rate show the impact of an increase in the total demand for money with no change in the money supply. Rate ofinterest, 1 B (percent) 0 E A 5 1 2 Amount of money demanded and supplied D O In the graph above this can be seen as a shift of curve 4 leftward to curve 3 and the resulting new equilibrium is E. O In the graph above this can be seen as a shift of curve 1 rightward to curve 2 and the resulting new equilibrium is A. O In the graph above this can be seen as a shift of curve 2 leftward to curve 1 and the resulting new equilibrium is B. In the graph above this can be seen as a shift of curve 3 rightward to curve 4 and the resulting new equilibrium is D. O In the graph above this can be seen as a shift of curve 1 rightward to curve 2 as well as a shift of curve 3 rightward to curve 4 and the resulting new equilbrium is C.
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