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-Refer to the Above Graph Above to Answer This Question

Question 108

Multiple Choice

-Refer to the above graph above to answer this question.What will happen if the Bank of Canada increases the supply of money? A) The MD3 curve would shift right and the equilibrium interest rate will rise. B) The MD3 curve would shift right and the equilibrium interest rate will fall. C) The MS curve would shift left and the equilibrium interest rate will fall. D) The MS curve would shift right and the equilibrium interest rate will fall. E) The MS curve would shift right and the equilibrium interest rate will rise.
-Refer to the above graph above to answer this question.What will happen if the Bank of Canada increases the supply of money?


A) The MD3 curve would shift right and the equilibrium interest rate will rise.
B) The MD3 curve would shift right and the equilibrium interest rate will fall.
C) The MS curve would shift left and the equilibrium interest rate will fall.
D) The MS curve would shift right and the equilibrium interest rate will fall.
E) The MS curve would shift right and the equilibrium interest rate will rise.

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