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Draw the graphs for: The Purchasing Power of Money, the Price/Quantity, and the Quantity-of-Loanable Funds graphs...

Draw the graphs for:
The Purchasing Power of Money, the Price/Quantity, and the Quantity-of-Loanable Funds graphs
for the case of a decreasing demand of money and credit.
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Answer #1

PRICE SUPPLY OF LOANABLE FUNDS EQUILIBRIUM INTERES RATE DEMAND FOR LOANABLE FUNDS QUANTITY (*) LOANABLE FONDS (EQUILBRIUMPTY
When the quantity of money demanded or loanable funds decreases, the price of money(or interest rate) also decreases, while shifting the demand for loanable funds curve to shift to the left, i.e. at higher interest rates, people will demand less loanable funds, and at lower interest rates, people will demand more loanable funds.

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