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One impact of Covid was to create financial uncertainty which led Canadians to increase their demand to hold liquidity or money rather than bonds. With

One impact of Covid was to create financial uncertainty which led Canadians to increase their demand to hold liquidity or money rather than bonds. With the aid of the DD/AA model diagram, explain the impact this desire to re-allocate asset holdings would have on the level of Canadian output (Y) and the exchange rate (E).

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