Correctly label each of the following on the Money Market Graph above:
NIR -- Nominal Interest Rates
Q$ -- Quantity of Money
MS -- Money Supply
MD -- Money Demand
i -- Nominal Interest rate at equilibrium
Q -- Quantity of Money at equilibrium
Scroll down to see the answer and to continue on with the activity.
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The correctly drawn graph is below to the right.
You can do the next activity in one of two ways:
1) Directly below, answer the questions by drawing on the Money Market Graph.
2) Scroll down farther and answer the same questions by using a moveable Money Market Graph.
Monetary Policy, Part V (10 Questions Money Market Graph)
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Everything You Have to Know about Unit 4: Financial Sector