Use the accompanying graphs to show what happens in the economy when Mincreases from $300 billion to $400 bilion. a. Sho

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Use The Accompanying Graphs To Show What Happens In The Economy When Mincreases From 300 Billion To 400 Bilion A Sho 1 (34.85 KiB) Viewed 42 times

Use the accompanying graphs to show what happens in the economy when Mincreases from $300 billion to $400 bilion. a. Show the change in Mon the graph Instructions: Click on the MS, curve and drag it to the new position. 14. MS 12 10 8 Interest Rate 6 4 Money demand 2 O 100 200 300 400 500 600 700 Quantity of Money (billions of dollars) b. Identify the change in interest rate on the graph Instructions: Use the tool provided Ty' to identify the new interest rate. 14 Tools 12 12 10 8 Interest Rate 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 Investment(billions of real dollars) Instructions: Round your response to one decimal place. c Holding the price level constant, we would expect that if the multiplier is 1.5, the cumulative effect of this change in Mon AD wil be: billion