Refer to Figure 18-1. Suppose that the U.S. government deficit decreases, causing interest rates in the United States to fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?
A) Supply would increase, demand would increase and the economy moves from D to A to B.
B) Supply would decrease, demand would increase and the economy moves from A to D to C.
C) Demand would increase and the economy moves from A to B.
D) Demand would decrease and the economy moves from B to A.
D
Economics
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A curve that depicts the relationship between price and quantity demanded is the:
a. supply curve. b. supply schedule. c. demand curve. d. equilibrium price.
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