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Business, 22.02.2020 01:48 jetblackcap

Assume that the money market is initially in equilibrium and that the money supply is then increased. Explain the adjustments toward a new equilibrium interest rate. Will bond prices be higher at the new equilibrium rate of interest? What effects would you expect that interest-rate change to have on the levels of output

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Assume that the money market is initially in equilibrium and that the money supply is then increased...
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