Draw a graph showing equilibrium in the money market, Econometrics

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Draw a graph showing equilibrium in the money market

1. Draw a graph showing equilibrium in the money market. Carefully label all curves and axes and explain why the curves have the slopes they do.

2. Using the graph you prepared for exercise 3, illustrate and explain what happens when the Fed decreases the money supply

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Econometrics: Draw a graph showing equilibrium in the money market

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