Interest Rate Figure 5-5 1 True. False. 1 True or false? Figure 5-5 illustrates the effect of an increased rate of money supply growth. From the figure, one can conclude that the liquidity effect is not present because the interest rate never drops. Time C

True or false? Figure 5-5 illustrates the effect of an increased rate of money supply growth. From the figure, one can conclude that the liquidity effect is not present because the interest rate never drops. Figure 55 True. False