Interest Rate Interest Rate - Mp Ms Interest Rate Intered Rate Quantity of Money Investment part din FIGURE 27-6 Refer to Figure 27-6. The famous debate from the 1950s and 1960s between Keynesians and Monetarists centred around the slopes of the money demand and investment demand curves. If I am a Monetarist, and the economy is experiencing an inflationary gop, which best reflects my beliefs? Select one: O A. the diagrams in part (i) were more realistic than those in port (ii), and government spending should be decreased. O B. the diagrams in part (i) aremore realistic, and taxes should be decreased. O C. the diagrams in part (ii) are more realistic and MS should be increased. D. the diagrams in part (ii) are more realistic, and MS should be decreased. The correct answer is: the diagrams in part (ii) are more realistic, and MS should be decreased