1.) If the central bank of a country decides to print an additional $125,000 currency, it will initially add to the ________ and will ________ the M1 in the economy.

monetary base; increase

public savings; increase

travelers' checks; decrease

government spending; decrease

aggregate demand; increase

2.)An increase in the market interest rate would cause the supply of loanable funds to ________ and the demand for loanable funds to ________.

increase, decrease

decrease, increase

increase, increase

decrease, decrease

remain constant, increase

3.) Use the graph to answer the question that follows.