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1. Explain how partial crowding out works. 2. Graph #1 3. Explain how government deficit spending decreases the quantity of loanable funds. 4. Graph #3
1. Explain how partial crowding out works.
2. Graph #1
3. Explain how government deficit spending decreases the quantity of loanable funds.
4. Graph #3
5. Explain the relationship between money supply and prices (inflation). Hint: use the velocity formula.
6. Find the estimated M1 (money 1) and explain what the number means.
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