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Q.3 (15 points ) Movement along the AD curve Consider the following AD curve of an economy P y State whether each of the following

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Q.3 (15 points ) Movement along the AD curve Consider the following AD curve of an economy P y State whether each of the following statements is True , or False , or Uncertain . Then provide a brief explanation to justify your answer . (a) The quantity of loanable funds (or credits 3') supplied by the lenders and demanded by the borrowers is bigger at point D than at point E. (b) The real balance of money held by the public (m) is higher at point D than at point E. (c) The interest rates in both the credit and money markets (rm-"1\" and Rmmey) are lower at point D than at point E

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