Exogenous increase in the supply of money

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Consider an exogenous increase in the supply of money. What is the effect of this increase on the rate of interset? What is likely to happen to an equilibrium interset rate in the bond market and also to stock prices, and why?

(Please show all your calculation process clearly in detail, your answer should base on calculation result but not a personal judgement.)

Reference no: EM131542838

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