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Problem B: Ample Reserves (5 points) Draw the money demand graph after 2014, including today, in which we currently live in a time of ample
Problem B: "Ample Reserves" (5 points) Draw the money demand graph after 2014, including today, in which we currently live in a time of "ample reserves" due to multiple rounds of quantitative easing (QE). Draw three different money supply curves on this graph, showing how increasing or decreasing the money supply DOES NOT affect interest rates in this framework. Hint: Think about what the slope of the MD curve would look like here
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