Question: P1 mmmmiuheiur; Let us modify the graph: The y-axis (vertical) is interest rate and (horizontal) is the level or quantity of m The two vertical


P1 mmmmiuheiur; Let us modify the graph: The y-axis (vertical) is interest rate and (horizontal) is the level or quantity of m The two vertical lines from the left to the your computer) are M51 and M52, respeclti representing an increase in money supply, P reminded that money supply is fixed by the c and is not affected by interest rates. The two downward sloping lines from the left i: are Md1 and MdZ, respectively, representing an money demand. Please be reminded that money . is inversely affected interest rates and shift are a by changes in money incomes or nominal inc me. : illustration, there is both an increase in the ante\" money and the supply of money and the incr a"' of them are equal so the result was no Chang i " interest rate but increase in the level of man
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