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Question 1. Show this monetary policy by illustrating the shift of money supply (MS) curve on a graph. How does the interest rate change at

Question 1.Show this monetary policy by illustrating the shift of money supply (MS) curve on a graph. How does the interest rate change at the new equilibrium point?

Question 2.How does the change in interest rate from the previous question affect aggregate demand (AD)?

Illustrate the shift of the AD curve with a graph.
How does the price level and real GDP change?

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