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Answer to Question #152451 in Macroeconomics for enny
Question #152451
Suppose the Bank Negara Malaysia change the quantity of money in the economy. Graphically illustrate how does this change affect the interest rate in the SHORT run?
Expert's answer
This change will decrease or increase the supply of loanable funds, as a result the equilibrium interest rate will increase or decrease and the equilibrium quantity of loanable funds will decrease or increase in the SHORT run.
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