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Use the following to answer questions: Use the following to answer questions:   -(Figure: Short-Run Determination of the Interest Rate) Refer to Figure: Short-Run Determination of the Interest Rate.If the money supply is at MS<sub>1</sub> and the central bank buys Treasury bills,then in the short run the interest rate will: A)  increase above i<sub>1</sub>. B)  remain at i<sub>1</sub>. C)  decrease to i<sub>2</sub>. D)  fluctuate randomly.
-(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 central bank buys Treasury bills,then in the short run the interest rate will:


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