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Question 132

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Use the following to answer questions .
Exhibit: Effects of Monetary Policy Use the following to answer questions . Exhibit: Effects of Monetary Policy -(Exhibit: Effects of Monetary Policy) The shift in the demand for bonds from D<sub>1</sub> to D<sub>2</sub>, in Panel (b) will result in a A) lower interest rate and no change in investment. B) higher interest rate and lower investment. C) lower interest rate and higher investment. D) higher interest rate and higher investment.
-(Exhibit: Effects of Monetary Policy) The shift in the demand for bonds from D1 to D2, in Panel (b) will result in a


A) lower interest rate and no change in investment.
B) higher interest rate and lower investment.
C) lower interest rate and higher investment.
D) higher interest rate and higher investment.

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