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what is liquidity preference model and which choice is correct? 13. Using the liquidity-preference model, when the Federal Reserve decreases the money supply, (a) the

what is liquidity preference model and which choice is correct?

13. Using the liquidity-preference model, when the Federal Reserve decreases the money supply, (a) the equilibrium interest rate increases. (b) the aggregate-demand curve shifts to the right. (c) the quantity of goods and services demanded is unchanged for a given price level. (d) the short-run aggregate-supply curve shifts to the left.

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