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Suppose the CBS increase the money supply by $10 billion. Show the effect in your graph and describe the money market adjustment process to a

Suppose the CBS increase the money supply by $10 billion. Show the effect in your graph and describe the money market adjustment process to a NEW equilibrium interest rate. What is the new equilibrium rate of interest?

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a. Using the demand and supply schedule for money shown below, do the following: MONEY MARKET Demand for Money Supply of Money (billions) (billions) 15 25 30 35 30 45 30 Interest rate (per cent) i. Graph the demand for and the supply of money curves (5 marks) ii. Determine the equilibrium interest rate (1 mark)

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