Please show graphically how a contractionary money supply affects the economy. What is the answer to 3. b) http://postimage.org/image/7tin4duxj/
There is no way to actually draw graphs on eNotes for questions like these. However, you can follow this link to find (just scroll down a little) graphs that show this process.
Graphing this process requires two graphs. On one of the graphs, you need to have the interest rate on your vertical axis and the amount of money demanded and supplied on your horizontal axis. You need to have a vertical line that represents the money supply. Finally, you need a line that slants downward from left to right and represents the demand for money. The point where...
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