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Suppose that policy-makers are concerned that interest rates are too high in the money market in Figure 2, when M51 and MD3 are the relevant

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Suppose that policy-makers are concerned that interest rates are too high in the money market in Figure 2, when M51 and MD3 are the relevant curves. If policy-makers expanded the money supply, what would the new equilibrium be? Interest rate MS, MS? 1 3 4 5 6 MD, MD 3 MD Money Figure 2: A model showing the money market, which determines the equilibrium interest rate on savings, as according to Keynes's theory of liquidity preference

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