Figure $1$ to the right shows the demand for money and the supply of money.

Part $2$

a$.$ Given the position of the M Subscript D$$ curve, an attempt by the Bank of Canada to set both the money supply and the interest rate at point A$($or at point$$ B$)$ would be met with

failure

$.$ This is because the two variables are

$$

$.$

$.$

$.$

$.$

Question content area right

Part $1$

Figure $1$

Quantity of Money

Interest Rate

Upper M Subscript Upper D Superscript $0$Upper M Subscript Upper S Superscript $0$font size increased by $1$ font size increased by $1$ font size increased by $1$ i $0$

B

A