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 MS2 and the Bank of Canada conducts contractionary monetary policy,in the short run the interest rate increases to i1.In the long run,prices will _____,thereby _________ the demand for money.
Definitions:
Macroenvironment Analysis Framework
A strategic tool used to analyze the external environment that a business operates in, often involving political, economic, sociocultural, technological, environmental, and legal factors (PESTEL).
Inflation
Refers to the persistent increase in the prices of goods and services.
Growth Of Industry
The process of expansion and increased productivity within a specific sector of the economy.
Greenwashing
The practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or company in order to present an image of environmental responsibility.
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