The figure to the right depicts the market for money. Show the appropriate change in the money supply that would cause an increase in interest rates. 1.) Using the line drawing tool, show the appropriate change in the money supply. Label it M. 2.) Using the point drawing tool, indicate the new equilibrium interest rate and quantity of money. Label it '2'. Carefully follow the instructions above, and only draw the required objects.

The figure to the right depicts the market for money. Show the appropriate change in the money supply that would cause an increase in interest rates. 1.) Using the line drawing tool, show the appropriate change in the money supply. Label it M. 2.) Using the point drawing tool, indicate the new equilibrium interest rate and quantity of money. Label it '2'. Carefully follow the instructions above, and only draw the required objects.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Money And The Financial System

Section: Chapter Questions

Problem 1.5P

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