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Decrease the money supply in the united states

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Reference no: EM131962027

If Federal Reserve decides to decrease the money supply in the United States, what will happen to: (1) the interest rate; (2) the level of investment spending in America; (3) the level of GDP; (4) the level of money demand; (3) the U.S interest rate; (4) the level of U.S. Investment spending. In your answer, please draw the changes in the IS Curve and the LM Curve if there are any.

Reference no: EM131962027

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