Q472
Equilibrium interest rate decreases and economic conditions increases then supply curve must shift to
A.
up and to left
B.
up and to right
C.
down and to left
D.
down and to right
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Equilibrium interest rate decreases and economic conditions increases then supply curve must shift to down and to right. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied.