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    Principles of Economics Study Set 8
  4. Exam
    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    Figure 34-8 ​
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Figure 34-8 ​

Question 121

Question 121

Short Answer

Figure 34-8 Figure 34-8   ​ -Refer to Figure 34-8. Initial equilibrium exists at point A. A decline in prices will cause households to _____ their desired money holdings, moving the interest rate to _____. ​
-Refer to Figure 34-8. Initial equilibrium exists at point A. A decline in prices will cause households to _____ their desired money holdings, moving the interest rate to _____.

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