Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

For a country, the original money supply curve is MS0, the original liquidity preference curve is LP0 and the original rate of interest is R0. If the precautionary motive for holding money rises, which diagram shows the changes that will happen?

  • A[IMAGE:9708_s21_qp_32_p11_diagram_4]
  • B[IMAGE:9708_s21_qp_32_p11_diagram_3]
  • C[IMAGE:9708_s21_qp_32_p11_diagram_2]
  • D[IMAGE:9708_s21_qp_32_p11_diagram_1]

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