Question: In the figure above , a movement from point B to point A would be caused by Select one : a decrease in real GDP

In the figure above , a movement from point B to point A would be caused by Select one : a decrease in real GDP b. an increase in the price level c.a decrease in the price level d.an increase in the interest rate.

Interest rate, A B Money demand2 Money demand, Quantity of money, M (billions of dollars) In the figure above, a movement from point B to point A would be caused by

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=+ a. Using the Fisher equation (discussed in Chapter 5), what can you infer about expected infl ation in Canada and in the United States?

=+ c. A friend proposes a get-rich-quick scheme: borrow from a U.S. bank at 8 percent, deposit the money in a Canadian bank at 12 percent, and make a 4 percent profi t. Whats wrong with this scheme?

=+ b. What can you infer about the expected change in the exchange rate between the Canadian dollar and the U.S. dollar?