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 MS1 and the Fed conducts expansionary monetary policy, in the short run the interest rate drops to r2. In the long run the demand for money will _____, and the interest rate will_____.
Definitions:
Immigrants
Individuals who come to live permanently in a foreign country, often seeking better living conditions or opportunities.
77 Percent
An expression that potentially indicates a specific percentage, possibly related to statistical data in a given context.
Public Schools
In many countries, schools supported by public funding that provide free education to children.
Engle V. Vitale
A landmark Supreme Court case in 1962 that ruled it is unconstitutional for state officials to compose an official school prayer and encourage its recitation in public schools.
Q11: (Figure: Fiscal Policy II) Refer to Figure:
Q20: A supply shock caused by an increase
Q23: A contractionary monetary policy is appropriate during
Q24: A contractionary monetary policy is appropriate during
Q64: Which asset is the MOST liquid?<br>A) a
Q99: An economy that lacks a medium of
Q110: The double coincidence of wants problem can
Q160: Historically, governments have turned to seignorage to
Q243: In 2007, the Fed raised its target
Q302: The short-run aggregate supply curve will shift