1 Using an AD diagram, explain the elements that would be involved in an expansionary fiscal policy. 2 Using an AD diagram, explain the elements that would be involved in a "tight" (contractionary) monetary policy. 3 Using an AD diagram, explain two factors that would cause the value of a country's Keynesian multiplier to increase. 4 Using a diagram, explain how commercial banks can create new money. 5 Using a diagram, explain two tools available to central banks to control the money supply. 6 Using a diagram, explain what determines the equilibrium nominal interest rate.