P2 r2 P1 MD2 MD, 1. Y2 Y1 REFER TO FIGURE 1. If the money-supply curve MS on the left-hand graph were to shift to the right, this w O create, until the interest rate adjusted, an excess demand for money at the interest rate that equilibrated the money m All of the other answers are correct.

P2 r2 P1 MD2 MD, 1. Y2 Y1 REFER TO FIGURE 1. If the money-supply curve MS on the left-hand graph were to shift to the right, this w O create, until the interest rate adjusted, an excess demand for money at the interest rate that equilibrated the money m All of the other answers are correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

FIGURE 1
MS
P2
r2
P1
AD
MD2
r1
MD1
REFER TO FIGURE 1. If the money-supply curve MS on the left-hand graph were to shift to the right, this would
O create, until the interest rate adjusted, an excess demand for money at the interest rate that equilibrated the money market before the shift.
All of the other answers are correct.
O represent an action taken by the Federal Reserve.
O shift the AD curve to the left.

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