Decrease in the supply of real money balances

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Reference no: EM131210360

Graphically show what happens to the interest rate if the Fed takes action that leads to a decrease in the supply of real money balances while the economy is in a liquidity trap.

Reference no: EM131210360

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Decrease in the supply of real money balances : Graphically show what happens to the interest rate if the Fed takes action that leads to a decrease in the supply of real money balances while the economy is in a liquidity trap.

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