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Interest Transaction demand for Asset demand for Money rate money money supply 2% $220 $300 $460 4 220 280 460 6 220 260 460 8
Interest Transaction demand for Asset demand for Money rate money money supply 2% $220 $300 $460 4 220 280 460 6 220 260 460 8 220 240 460 10 220 220 460 Refer to the above information. An increase in the money supply of $20 billion will cause the equilibrium interest rate to Multiple Choice fall by 4 percentage points. rise by 2 percentage points. O fall by 2 percentage points. O rise by 4 percentage points
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