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Draw a graph for the supply of and demand for money in a certain macroeconomy. In the graph, demonstrate the impact of an increase in
Draw a graph for the supply of and demand for money in a certain macroeconomy.
In the graph, demonstrate the impact of an increase in the supply of money.
Explain what will happen to interest rates as a result of the increase in the money supply.
Explain one way a nation's central bank can use policy to cause that increase in the money supply.
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