Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

The diagram illustrates two liquidity preference demand curves for money (LP). The money supply is M and the original equilibrium rate of interest is r1. What might have led to the decrease in the rate of interest from r1 to r2?

  • Aan increase in output
  • Ban increase in savings
  • Can increase in unemployment
  • Da rise in the price level

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