In Figure 4.3, the decrease in the interest rate from i1 to i2 can be explained by
A. a decrease in money growth.
B. an increase in money growth.
C. a decline in the expected price level.
D. only (a) and (b) of the above.
Answer:B
In Figure 4.3, the decrease in the interest rate from i1 to i2 can be explained by
A. a decrease in money growth.
 B. an increase in money growth.
 C. a decline in the expected price level.
 D. only (a) and (b) of the above.
