1.) Using the 3point curve drawing toot, draw the aggregate money demand curve (nominal money balances) in the diagram to the right. Label this line
1.) Using the 3point curve drawing toot, draw the aggregate money demand curve (nominal money balances) in the diagram to the right. Label this line 'L(R,Y)1\". Now suppose real GNP decreases. 2.) On the same graph, using the 3point curve drawing tool, draw the new aggregate demand for money curve as a result of this change. Label this line 'L(R,Y)2". Carefully follow the instructions above and only draw the required objects. Interest rate, R Real Money Holdings
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