Argument on the following premises: 1. If the economy's income slowly increases and the Central Bank wants
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Question:
Argument on the following premises:
1. If the economy's income slowly increases and the Central Bank wants to increase the money supply, it should lower interest rates. You must answer with a graph the market failure that you want to face and the monetary policy.
2. If the money supply increases, you will need to raise the interest rate to clear the money market. You must answer with a graph the market failure that you want to face and the monetary policy.
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