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Suppose the Federal Reserve (the Fed) decides to tighten credit by contracting the money supply.Use the following graph by moving the black X to show

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Suppose the Federal Reserve (the Fed) decides to tighten credit by contracting the money supply.Use the following graph by moving the black X to show what happens to the equilibrium level of borrowing and the new equilibrium interest rate. INTEREST RATE, r [Percent] 16 New Equilibrium CAPITAL (Billions of dollars] Clear A

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