Money market for the case of the interest rate control

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Using the model of the money market for the case of the interest rate control, shift the appropriate curve(s) to show the impact of a decrease in the interest rate caused by an expansionary change in monetary policy. Explain fully the changes in money demand, money supply, bond prices and interest rates once the market has reached its new equilibrium. Label each axis and curve that you draw.

Reference no: EM13886805

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