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Using a Graph of the Supply and Demand for Money

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Using a graph of the supply and demand for money, show how a decrease in the supply of money could lead to a long-run increase in the equilibrium interest rate. Explain.
Using a graph of the supply and demand for money, show how a decrease in the supply of money could lead to a long-run increase in the equilibrium interest rate. Explain.

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A decrease in the money supply shifts th...

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