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Three graphs depict the money market, the investment market, and the product market side by side. Panel A, the money market, has interest rate on
Three graphs depict the money market, the investment market, and the product market side by side. Panel A, the money market, has interest rate on the y-axis and money on the x-axis, and plots a downward-sloping money demand curve M D 1 and two vertical money supply curves M S 1 and M S 2. M S 1 is to the left of M S 2. A horizontal dashed line connects the y-axis to the point where M S 1 intersects M D 1. This is labeled lower case i 1 on the y-axis. A horizontal dashed line connects the y-axis to the point where M S 2 intersects M D 1. This is labeled lower case i 2 on the y-axis. Panel B, the investment market, has interest rate on the y-axis and investment on the x-axis and plots a downward sloping investment curve labeled capital I. The horizontal dashed lines continue from Panel A, and depict lower case i 1 and lower case i 2 on the y-axis, and continue until they meet the investment curve. Where lower case i 1 meets the investment curve, a vertical dashed line drops to the x-axis and is labeled capital
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