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Business, 23.07.2021 03:30 oliviahopebigel

For every​ $1,000 of annual​ income, households maintain average cash balances ​(their demand for money​) of​ $200. How will growth in GDP affect interest​ rates, holding the money supply​ constant? Use the liquidity preferenceLOADING... frameworkLOADING ​1.) Using the line drawing​ tool, show the effect of growth in GDP using the liquidity preference framework. Properly label your line. ​2.) Using the point drawing tool​, indicate the new equilibrium interest rate and quantity of money. Label the point​ '2'. Carefully follow the instructions​ above, and only draw the required objects.

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