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Figure 13-1 Refer to Figure 13-1. Suppose the economy is initially in equilibrium where MD = MS1. What is the effect on the interest rate
Figure 13-1 Refer to Figure 13-1. Suppose the economy is initially in equilibrium where MD = MS1. What is the effect on the interest rate if the money supply increases to MS2? a. It will fall by 4 percentage points. b. It will fall by 2 percentage points. c. It will increase by 4 percentage points. d. It will increase by 2 percentage points
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Microeconomics
Authors: Dean Karlan, Jonathan Morduch
1st edition
978-0077332587, 007733258X, 978-0077332648, 77332644, 978-1259163531
