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Contractionary monetary policy Expansionary monetary policy 12% 4% o 2 s 4 so S 6 8 10 12 14 Billions of Dollars 16 The

Contractionary monetary policy Expansionary monetary policy 12% 4% o 2 s 4 so S 6 8 10 12 14 Billions of Dollars 16 The graph above depicts the loanable funds graph for Econoland. When 10 billion dollars of funds are supplied (by commercial banks) in the economy, the market interest rate is...

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Money Banking and Financial Markets

Authors: Laurence M. Ball

2nd edition

1429244097, 978-1429244091

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