Module 32 Featured Worksheet 1 Interest Rates in the Long Run 1. Draw a money market graph showing equilibrium nominal interest rate (i+) and equilibrium quantity (QM1). 2. Using the money market graph from question 1, show and explain what will happen to the equilibrium nominal interest rate if the money supply increases by 10%. 3. According to money neutrality, how will this change in the money supply impact the long-run aggregate price level? Dashboard Calendar 3