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    Principles of Economics Study Set 2
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    If the Interest Rate Is Below Equilibrium, the Excess Demand
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If the Interest Rate Is Below Equilibrium, the Excess Demand

Question 32

Question 32

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If the interest rate is below equilibrium, the excess demand for money puts downward pressure on the interest rate.

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