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44 (1 point) Interest rate (%) 986 MM Md Figure 14.6 100 200 Money ($ million) In Unit 10 we discussed Financial Markets. One market
44 (1 point) Interest rate (%) 986 MM Md Figure 14.6 100 200 Money ($ million) In Unit 10 we discussed Financial Markets. One market referred to in your lecture notes was the "money market". Refer to Figure 14.6. If the money supply increases from to A) the interest rate will increase to 10%. In Unit 10 we discussed Financial Markets. One market referred to in your lecture notes was the "money market". Refer to Figure 14.6. If the money supply increases from to A) the interest rate will increase to 10%. B) the interest rate will decrease to 6%. D) the money market will return to equilibrium only if the money supply is reduced to its original level. money demand must decrease for the money market to return to equilibrium
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