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Question 4 [21] 4.1 Mathematically, equilibrium in the money market can be expressed as: Ms = Mo (or Ms/P = MD/P) With the aid of an applicable diagram (draw the diagram), illustrate and discuss what chain events will occur in the money market when, owing to some change in the economy, there is an increase in the real demand for money, thus Mo/P graphically shifts to the right. Tip: A new equilibrium will be established. 4.2. Explain what the term "crowding out" means. 4.3 The strength of the crowding out effect depends mainly on four (4) relevant factors. List and briefly discuss the essence of these factors