Answer:
B. There is a movement down along a stationary money demand curve
Explanation:
Whenever the price level changes there is movement down or up along a stationary money demand curve, in this case because the price level is decreasing there will be a movement down because the demand curve is downward sloping and when price decreases more quantity is demanded so the movement is downwards.
Option A and C are wrong because change in price levels cannot cause the curve to shift right or left. Whenever the curves shift to the right or left it is because of non price reasons.
When consumers and businesses have greater confidence that they will be able to repay in the future, <u>the quantity demanded of financial capital at any given interest rate will shift to the right.</u>
D. Resourcefulness; if you can pick more than one than also chose A. Confidence.
<span>A massive overload in the electrical system. If the light had blinked three times before extinguishing itself it would have indicated that it had only been a minor surge. Four times before extinguishing would have revealed a short in the system.</span>
