What happens to the interest rate if money supply increase

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Reference no: EM133205812 , Length: Words Count:200

Assignment:

Answer the following IN YOUR OWN WORDS. Respond to each of the following in a minimum of 175 words. It will be ran thru a plagiarism checker, thanks.

1. Explain what happens to the interest rate if the money supply increases or decreases and the money demand remains unchanged.

2. Explain what happens to the interest rate if the money demand increases or decreases and the money supply remains unchanged.

3. Explain how both effect the economy.

Reference no: EM133205812

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