FIGURE 27-3
-Refer to Figure 27-3. Part i) of the figure shows the money market and the effect of an increase in the supply of money. The corresponding sequence of events in the bond market is as follows: The of money at i0 leads firms and households to bonds, which leads to an) in the price of bonds and a decrease in the interest rate.

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The Answer of  FIGURE 27-3
-Refer to Figure 27-3. Part i) of the figure shows the money market and the effect of an increase in the supply of money. The corresponding sequence of events in the bond market is as follows: The of money at i0 leads firms and households to bonds, which leads to an) in the price of bonds and a decrease in the interest rate.

FIGURE 27-3 -Refer to Figure 27-3. Part I) of the Figure Shows