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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?
1
Expert's answer
2020-12-25T15:26:07-0500

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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