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In Figure 15

Question 112

Multiple Choice

In Figure 15.4,an increase in the money supply from $65 billion to $100 billion will cause the equilibrium rate of interest to A) Decrease from 7 percent to 5 percent. B) Increase from 5 percent to 7 percent. C) Decrease from 7 percent to 3 percent. D) Increase from 3 percent to 5 percent. In Figure 15.4,an increase in the money supply from $65 billion to $100 billion will cause the equilibrium rate of interest to


A) Decrease from 7 percent to 5 percent.
B) Increase from 5 percent to 7 percent.
C) Decrease from 7 percent to 3 percent.
D) Increase from 3 percent to 5 percent.

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