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6. eoow The following graph shows the marginal cost (MC) and marginal benefit (MB) of holding real money balances. The market is initially in equilibrium
6. eoow The following graph shows the marginal cost (MC) and marginal benefit (MB) of holding real money balances. The market is initially in equilibrium at 100. Refer to the graph to answer the question. NN MB, Marginal benefitsand Marginal costs K 75 100 175 200 Real money balances Suppose the interest rate on bonds increases. Other things remaining the same, which of the following is true? The new equilibrium level of real money balances will be equal to 175. The marginal cost line will move from MC1 to MCa. The new equilibrium level of real money balances will be equal to 200. The marginal benefit line will move from MB1 to MBa
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