RO L(R,Y) Ms/P L1 a) Based on the graph above, discuss what would happen to the interest rate starting at point 1. R RO L (R,Y) L L1 Ms/P 2 b) Based on the graph above, discuss what would happen to the interest rate starting at point 1. c) All other things being equal, draw a graph demonstrating an increase of money supply (MS) in the money market. What's the impact on the interest rate?

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.