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Refer to the figure below. Suppose the relevant money supply curve is Ms2 and th

ID: 1244381 • Letter: R

Question

Refer to the figure below. Suppose the relevant money supply curve is Ms2 and the relevant money demand curve is Md2. If the money supply decreases, the new equilibrium interest rate would be ______ and the quantity of money _____.


a.

Refer to the figure below. Suppose the relevant money supply curve is Ms2 and the relevant money demand curve is Md2. If the money supply decreases, the new equilibrium interest rate would be and the quantity of money . inlineImageLabel MSMD.png a. i0,M1 b. i1,M2 c. i2,M2 d. i2, M1 e. i1, M1

Explanation / Answer

c

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