Use a money market graph to explain the effect of a decrease in the price level on

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Use a money market graph to explain the effect of a decrease in the price level on the equilibrium interest rate. How does the change in the interest rate affect planned investment spending, consumption spending, and net exports?

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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