Question: 1.Draw the behavior of interest rates using liquidity preference framework in each of these case. a.Increase in money supply, liquidity effect is faster, but smaller

1.Draw the behavior of interest rates using liquidity preference framework in each of these case.

a.Increase in money supply, liquidity effect is faster, but smaller

b. Increase in money supply, liquidity effect is slower, but larger

c.decrease in money supply, liquidity effect is slower, and smaller

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