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Q36E 3: I made a mistake in this clip. See if you can spot it.

In this video clip the impact of a simultaneous increase in income and output (Y) and an expansionary monetary policy is explained and illustrated. A mistake is made in this video clip and you have to identify the mistake. Which one of the following is the mistake? The chain of events chain representing the impact of an increase in the level of output on the interest is incorrect. The demand for money curve shifted in the wrong direction. The increase in the interest rate following the increase in the demand for money is incorrectly indicated in the diagram. The money supply curve shifted in the wrong direction. The chain of events chain representing the impact of an increase in the money supply on the interest is incorrect. The decrease in the interest rate following the increase in the money supply is incorrectly indicated in the diagram. The comparison between the initial position and the end result for an increase in both the demand and the supply of money is incorrect. The second shift of the money supply curve is in the wrong direction. The interest rate after the second shift of the Ms curve is incorrectly indicated.
Length: 01:45

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