Question: Refer to the graph. If the initial equilibrium interest rate was 5 percent and the money supply increased by $50 billion, then the new interest

Refer to the graph. If the initial equilibrium interest rate was

Refer to the graph. If the initial equilibrium interest rate was 5 percent and the money supply increased by $50 billion, then the new interest rate would be

Multiple Choice

4 percent.
1 percent.

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