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The diagrams shows the determination of the rate of interest in the economy where M represent the money supply and LP represents liquidity preference. rate

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The diagrams shows the determination of the rate of interest in the economy where M represent the money supply and LP represents liquidity preference. rate of interest 0 quantity of money What might have caused the rise in the rate of interest rate r1 t0 r2? 0 A. an increase In national income 0 B an increase in money supply 0 c. a reduction in investment expenditure 0 D. a reduction in the loans made by the private sector

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