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Money market graph illustrating the effects of various economic scenarios on the nominal interest rate.

A correctly labeled money market graph showing the initial nominal interest rate IR1, with four scenarios: exports increase, the Fed increases the money supply, there is an increase in the inflation rate, and the Fed decreases the money supply.

A correctly labeled money market graph showing the initial nominal interest rate IR1, with four scenarios: exports increase, the Fed increases the money supply, there is an increase in the inflation rate, and the Fed decreases the money supply.

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