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MS Interest rate, r 1,000 500 800 Money, M Figure 16.3 Refer to Figure 16.3. The money market will be in equilibrium at an inQUESTION 16 Interest rate (%) BM mo Money Fig 16.1 Refer to Figure 16.1. Which demand for money decreases when income decreas| M M Interest rate (%) 500 200 Money ($ million) Figure 16.5 Refer to Figure 16.5. Assume the interest rate equals 8%. If thQUESTION 22 MS Interest rate (%) 150 Money ($ million) Figure 16.2 Refer to Figure 16.2. At an interest rate of 8%, there is:QUESTION 23 Interest rate (%) Mº - M Money Figure 16.1 Refer to Figure 16.1. A movement from Point A to Point B can be caused

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6%

This is because at 6% rate of interest demand for money is equal to the supply of money.Demand for money intersect supply of money at 6% rate of interest.

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