Impact on overall GDP of a decrease in the money supply

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Reference no: EM13982203

Draw the 3 graphs required to show the impact on overall GDP of a decrease in the money supply.

Also carefully explain, in your own words, the relationships between the graphs, the process of adjustment, and the overall impact of the money supply decrease on GDP.

-Note, graph 1 is the money market (MS/MD), graph 2 is the Investment/interest rate graph, and graph 3 is the aggregate expenditure/Real GDP graph with the 45-degree line.

Reference no: EM13982203

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