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Question 3. {1 points] Assume that the economic returns [for example, interest payments} of holding other assets [such as bonds} decrease signicantly, and then holding
Question 3. {1" points] Assume that the economic returns [for example, interest payments} of holding other assets [such as bonds} decrease signicantly, and then holding money becomes more attractive. Assume that money supply is held constant. Use the aggregate demandaggregate supply model to illustrate graphically the impact in the short run and the long run of this change. He sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; iv. the direction the curves shi; v. the short-run equilibrium values; and vi. the long-run equilibrium values. State in words what happens to prices and output in the short run and the long run
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