Essay
Draw the demand and the supply for money and identify the equilibrium interest rate. Make sure to draw a money supply curve that is independent of the interest rate. Draw the curves so that the equilibrium interest rate is 8%. Explain why interest rates above or below 8% are not stable.
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Correct Answer:
Verified
Interest rates above 8% create an exces...
View Answer
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Get Access to more Verified Answers free of charge
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