Exhibit 16-3 Money market demand and supply curves In Exhibi…

Exhibit 16-3 Money market demand and supply curves In Exhibit 16-3, assume an equilibrium with an interest rate of 15 percent and the money supply at $100 billion. The Fed uses its policy tools to move the economy to a new equilibrium at E2 with money supply of $150 billion and an interest rate of 10 percent. This change could be the result of a(n):