f the demand for money curve shifts from Md1 to Md0 the equilibrium interest rate will.. Increase from 5% to 10% Decrease from 7% to 5% Increase from 5% to 7% Remain at 7% 2. If the demand for money curve shifts from Md1 to Md0 and the interest rate remains at 5% there will be An equilibrium in the money market An excess demand for money An equilibrium in the bond market An excess

ENGR.ECONOMIC ANALYSIS
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1. If the demand for money curve shifts from Md1 to Md0 the equilibrium interest rate will.. Increase from 5% to 10% Decrease from 7% to 5% Increase from 5% to 7% Remain at 7% 2. If the demand for money curve shifts from Md1 to Md0 and the interest rate remains at 5% there will be An equilibrium in the money market An excess demand for money An equilibrium in the bond market An excess supply of money
Refer to the information provided in Figure 2 below to
answer the questions that follow.
Figure 2
Interest rate (%)
10
7
5
Ms
4
Money ($ million)
MO
Mo
Transcribed Image Text:Refer to the information provided in Figure 2 below to answer the questions that follow. Figure 2 Interest rate (%) 10 7 5 Ms 4 Money ($ million) MO Mo
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