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Suppose the money supply in the economy is $400 billion when the interest rate is 7%. a. If the interest rate increases to 10%, the
Suppose the money supply in the economy is $400 billion when the interest rate is 7%. a. If the interest rate increases to 10%, the supply of money will multiple choice 1 remain unchanged. increase. decrease. b. Suppose instead the interest rate falls to 5%. The supply of money will multiple choice 2 decrease. remain unchanged. increase
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