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Simple model use. Using our simple model of the money market suppose two things happen: 1. The monetary authorities decrease the money supply 2. Real

Simple model use.

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Using our simple model of the money market suppose two things happen: 1. The monetary authorities decrease the money supply 2. Real national income (Y) decreases The equilibrium interest rate (R) will: 0 always increase. 0 always decrease. 0 increase as long as the change in the money supply is greater than the change Y. 0 decrease as long as the change in the money supply is greater than the change Y. 0 it is not possible to determine with the available information

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