Question 23Figure 35-4INTEREST RATE552MSQUANTITY OF MONEYMD,MDRefer to Figure 35-4. Suppose the current equilibrium interest rate is . If the Federal Reserve increases the money supply, and the price level does not change,оthere will be an increase in the equilibrium quantity of goods and services demanded.there will be a decrease in the equilibrium quantity of goods and services demanded.there will be an increase in the equilibrium interest rate.fewer firms will choose to borrow to build new factories and buy new equipment.1 pts

The correct answer is c. There will be an increase in the equilibrium interest rate.The money supply…

Answered: Question 23 Figure 35-4 INTEREST RATE…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 5CQQ

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