Use the following to answer questions:
Figure: Short-Run Determination of the Interest Rate 
-(Figure: Short-Run Determination of the Interest Rate) Refer to Figure: Short-Run Determination of the Interest Rate. If the money supply is at MS2 and the Fed conducts contractionary monetary policy, in the short run the interest rate increases to r1. In the long run prices will _____ thereby _________ the demand for money.
Definitions:
Peer Rejection
The process or state of being excluded and not accepted by one's contemporaries or peers.
Effects
Consequences or outcomes that result from a specific cause or action.
Self-Esteem
A person's overall subjective sense of personal worth or value.
African American
A racial or ethnic group in the United States with ancestral ties to Africa.
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