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Refer to the graph above. If the interest rate rises from 2 percent to 3 percent, the supply of money must have:
Treaty
A formal agreement between two or more sovereign states or international entities, legally binding under international law.
Contract
An agreement between two or more parties creating obligations that are enforceable by law.
U.S. and Foreign Country
A diplomatic, economic, or cultural relationship between the United States and another sovereign nation.
Stare Decisis
A legal principle that dictates courts should follow the precedent set by previous decisions when resolving similar cases to ensure consistency and predictability in the law.
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