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Refer to Figure 9. The shift of the real money supply from MS1 to MS2 makes the equilibrium interest rate rise, which is due to

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Refer to Figure 9. The shift of the real money supply from MS1 to MS2 makes the equilibrium interest rate rise, which is due to Figure 9. Money market Interest rate, R MS2 MS! L(R.Y) > Real money holdings 1) a decrease in nominal money demand, while holding constant everything else. 2) a decrease in nominal money supply, while holding constant everything else. 3) a decrease in nominal money supply and changes in the price level. 4) an increase in nominal money supply and output

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