1. In the context of the money market, use the supply and demand for money model to graphically illustrate and explain the impact of an expansionary monetary policy on interest rates.
2. In the context of the money market, use the supply and demand for money model to graphically illustrate, and explain the impact of a contractionary monetary policy on interest rates.
3. Explain the long-run consequences of continued increases in the money supply in our economy.Do you think money affects the real output of our economy? Why?