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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>2</sub> and the Bank of Canada conducts contractionary monetary policy,in the short run the interest rate increases to i<sub>1</sub>.In the long run,the demand for money will _____,and the interest rate will_____. A)  increase;increase to i<sub>1</sub> B)  increase;remain at i<sub>2</sub> C)  decrease;decrease to i<sub>2</sub> D)  decrease;remain at i<sub>1</sub>
-(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 Bank of Canada conducts contractionary monetary policy,in the short run the interest rate increases to i1.In the long run,the demand for money will _____,and the interest rate will_____.


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