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The Fed thinks that the economy is about to slip into recession and takes actions to lessen its severity. ?? In the left? graph, draw
The Fed thinks that the economy is about to slip into recession and takes actions to lessen its severity.
??
In the left? graph, draw a curve that shows the change that the Fed makes to either the demand for money or the supply of money. Label it. Draw a point to show the new equilibrium quantity of money and interest rate.
??
Show the effect in the right graph. Draw either a new SLF curve or DLF curve. Label it.
Draw a point to show the new equilibrium quantity of loanable funds and interest rate.
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