According to the liquidity preference model

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Reference no: EM131103574

According to the liquidity preference model, if the Federal Reserve increases the money supply, the equilibrium interest rate ________, and this leads to _________ in the quantity demanded of nonmonetary interest-bearing financial assets.

a) falls; an increase

b) falls; a decrease

c) rises; an increase

d) rises; a decrease

Reference no: EM131103574

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