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Compare the interest rate used in the loanable funds model with the interest rate in the...

Compare the interest rate used in the loanable funds model with the interest rate in the money market model. Why are they different? & How does an increase in interest rates affect the Aggregate Expenditure model as well as the AD/AS model. Be sure to draw graphs to illustrate. For, AD/AS, you should show movement from long run equilibrium to long run equilibrium. Thank you!

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Rahul Sunny answered 2 years ago
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