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(Figure: A Money Market) The accompanying graph shows the money market in equilibrium at an interest rate of r2. Holding money supply constant, which of the following might cause the interest rate in the market to decrease to r1?
There is a recession that decreases real GDP. There is a significant increase in the stock market. The price level rises. Population increases.

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Ogorwyneidn

The following might cause the interest rate in the market to decrease to r1. There is a recession that decreases real GDP. Option 1.

What is meant by money market?

Banks, money managers, and retail investors can typically make secure, liquid, short-term investments through money markets, and borrowers including banks, broker-dealers, hedge funds, and non-financial firms can get low-cost capital through them.

The prime money fund, government money fund, treasury fund, and tax-free fund are among the several money market fund varieties. Because they are completely backed by the government's credit, treasury assets typically carry the lowest level of risk.

Large financial organizations can borrow and lend money on the money market, a short-term money market, at interbank rates. In the call money market, loans are typically only available for a week or less.

Read more on the money market here:https://brainly.com/question/1305875

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