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FIGURE 27-3 Refer to Figure 27-3

Question 75

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FIGURE 27-3 Refer to Figure 27-3.The increase in the money supply from M<sub>S0</sub> to M<sub>S</sub><sub>1</sub> shifts the monetary equilibrium from E<sub>0</sub><sub> </sub>to<sub> </sub>E<sub>1</sub><sub>.</sub>The result is A) a decrease in the interest rate and an increase in desired investment. B) an increase in the interest rate and a decrease in desired investment. C) sustained monetary disequilibrium. D) a shift of the investment demand curve to the right. E) a shift of the investment demand curve to the left. FIGURE 27-3 Refer to Figure 27-3.The increase in the money supply from MS0 to MS1 shifts the monetary equilibrium from E0 to E1.The result is


A) a decrease in the interest rate and an increase in desired investment.
B) an increase in the interest rate and a decrease in desired investment.
C) sustained monetary disequilibrium.
D) a shift of the investment demand curve to the right.
E) a shift of the investment demand curve to the left.

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