Money Supply and Equilibrium Interest Rate
Assuming the money market is initially in equilibrium with a money supply of 200 and an interest rate of 250, by what percentage does the equilibrium interest rate change if the money supply increases by 25 units to 225?
A
Approximately a 10% decrease
B
Approximately a 2% decrease
C
Approximately a 7% decrease
D
Approximately a 5% decrease
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