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(ii) Calculate the percentage changes in the equilibrium values of both the narrowly defined and broadly defined money supply if the central bank had used

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(ii) Calculate the percentage changes in the equilibrium values of both the narrowly defined and broadly defined money supply if the central bank had used INSTEAD an expansionary monetary policy by purchasing both private sector and federal government securities in the financial market worth $500 million. Explain and illustrate your answers with the appropriate diagrams, where necessary

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