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In several sentences explain: 1) Provide an explanation of how the Supply-Demand Theory of Interest Rate Determination would expect rates to perform if market conditions
In several sentences explain: 1) Provide an explanation of how the Supply-Demand Theory of Interest Rate Determination would expect rates to perform if market conditions are impacted by a decreasing money supply. Consider the three conditions of Demand performance (stay-the-same, increase, decrease) when considering the dollar level change in Supply given above.
2) Explain what is meant by the Expectations Theory of Interest Rate Determination.
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