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The figure shows the demand for money curve in Epsilon. The quantity of money is $3.1 trillion. Draw the supply of money curv
su Interest rate (percent per year) MD 3.2 2.9 3.0 3.1 Real money (trillions of 2009 dollars) >>> Draw only the objects speci
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The correct answer is option c that is buy bonds, bid up their price and the interest rate will fall. (as interest rate is lower then 5% at 3.1 million real money.)

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