Assume the interest rate is at equilibrium

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Assume the interest rate is at equilibrium at 8% and the money supply is increased by 100 from Ms1 ti Ms2. If the interest rate remains at 8%

a) money demand will increase

b) the money market will be in equilibrium

c) there will be an excess demand for money of 100

d) there will be and excess supply of money of 100

e) none of the above are correct

Reference no: EM131073891

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