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Exhibit 20-3  Money Market Demand and Supply Curves as Shown

question 196

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Exhibit 20-3  Money market demand and supply curves Exhibit 20-3  Money market demand and supply curves   As shown in Exhibit 20-3, assume the money supply curve shifts rightward from MS<sub>1</sub> to MS<sub>2</sub> and the economy is operating along the intermediate segment of the aggregate supply curve. The result will be a: A)  higher investment, lower real GDP, and lower price level. B)  lower investment, lower real GDP, and lower price level. C)  higher investment, higher real GDP, and higher price level. D)  higher interest rate and no effect on real GDP or the price level. As shown in Exhibit 20-3, assume the money supply curve shifts rightward from MS1 to MS2 and the economy is operating along the intermediate segment of the aggregate supply curve. The result will be a:


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Konrad Witz

A Swiss painter of the 15th century known for his innovative use of landscape in religious panel paintings.

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