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The following graph shows the money market in a hypothetical economy. The central bank in this economy is called the Fed. Assume that the Fed fixes the quantity of money supplied.Suppose the price level decreases from 120 to 100.

Respuesta :

Shifting the appropriate curve on the graph to show the impact of a decrease in the overall price level on the market for money is that; Money demand curve shifts to the left

How to interpret demand curves?

The curves attached refer to a graph depiction of  the relationship between the prize of a good and its demand and to the price of a good and its supply. The relationship between the supply and demand determines the eventual price.

The demand curve for money shows the quantity of money demanded at each interest rate. Its downward slope expresses the negative relationship between the quantity of money demanded and the interest rate. The relationship between interest rates and the quantity of money demanded is an application of the law of demand.

Thus, we can say that shifting the appropriate curve on the graph to show the impact of a decrease in the overall price level on the market for money is that; Money demand curve shifts to the left

Read more about demand curves at; https://brainly.com/question/516635

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