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 preference framework . 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'.
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