The graph below illustrates the money demand and investment demand for the economies of Pabst and Kokanee. Pabst MD 10 7 MS 8 6 A Interest rate Interest rate N 2 0 0 90 100 110 120 130 140 20 30 40 50 60 70 80 90 Quantity of money Quantity of investmentKokanee MS MD 5 Interest rate Interest rate A 3 N 2 0 100 110 120 130 140 150 0 10 30 40 50 70 80 90 Quantity of money Quantity of investmenta' If money supply is increased by 10. what will be the new interest rate? Round your answers to one decimal place. Pabst: |:|% Kokanee: |:| % b. What will be the increase in investment spending as a result of this new interest rate? Pabst: |:| Kokanee: |:| c. If the multiplier is 2 in each economy, what will be the increase in GDP? Pabst: |:| Kokanee: |:| d. In which economy would monetary policy be more effective in closing a recessionary gap? (Click to select) v