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5. Use the money-market diagram (with the interest rate on the vertical axis and real balances on the horizontal axis) to analyze the effects of
5. Use the money-market diagram (with the interest rate on the vertical axis and real balances on the horizontal axis) to analyze the effects of the following on the interest rate. Please include a diagram for each part. (5 points each) (a) Increase in the money supply increase decrease no change (b) Increase in the price level increase decrease no change (c) Decrease in real income [ increase decrease no change ]
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