Question: Other things being equal, what effect will each of the following have on the equilibrium rate of interest in the economy? (a) an increase in
Other things being equal, what effect will each of the following have on the equilibrium rate of interest in the economy? (a) an increase in the supply of money; (b) an increase in the equilibrium level of national income; (c) a decrease in the supply of money; (d) a leftward shift of the asset demand for money.
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