Unsustainable previous interest rate
Employ you knowledge about equilibrium prices to describe why the previous interest rate is no longer sustainable.
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Along with an enhancement in total money demand, the previous interest rate (i0) is unsustainable since along with the new demand for money (Dm1), the quantity of money demanded will surpass the quantity of money supplied. There would be lack of funds & upward pressure onto the interest rate.
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Amendment: A proposed or customary change to a bill in the Legislature, the California Constitution, acts passed by the Legislature, or ballot initiative.
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