Ard MS Figure 4.8 Money Demand, Money Supply, and the Liquidity Trap When the interest rate is equal to zero, and once p

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Ard MS Figure 4.8 Money Demand, Money Supply, and the Liquidity Trap When the interest rate is equal to zero, and once p

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Ard Ms Figure 4 8 Money Demand Money Supply And The Liquidity Trap When The Interest Rate Is Equal To Zero And Once P 1
Ard Ms Figure 4 8 Money Demand Money Supply And The Liquidity Trap When The Interest Rate Is Equal To Zero And Once P 1 (47.8 KiB) Viewed 39 times
Ard MS Figure 4.8 Money Demand, Money Supply, and the Liquidity Trap When the interest rate is equal to zero, and once people have enough money for transaction purposes, they become indifferent between holding money and holding bonds. The demand for money becomes horizontal This implies that, when the interest rate is equal to zero, further increases in the money supply have no effect on the interest rate, which remains equal to zero. Interest rate, B G Money, M
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