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An exogenous shock causes BOTH Money Demand (Md) and Money Supply (Ms) to decrease. The Md decrease is less than the decrease in Ms. What

An exogenous shock causes BOTH Money Demand (Md) and Money Supply (Ms) to decrease. The Md decrease is less than the decrease in Ms. What is the affect on equilibrium interest rate i and equilibrium Ms?

Graph and explain the process.

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