Expected inflation effects made interest rates falls

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M1 money growth in the U.S. was about 16% in 2008, 7% in 2009 and 9% in 2010. Over the same time period, the yield on 3-month T-bills fell from almost 3% to close to 0%. These high rates of money growth made the interest rates fall. Income and the price level made interest rate rises. Expected inflation effects made interest rates falls. Draw a graph to illustrate all these effects. (Income, price level, and expected inflation effect)

Reference no: EM131488973

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