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Suppose there is an increase in money supply. (a) Using a graph, show the impact of this situation on the real rate of interest in

Suppose there is an increase in money supply.

(a) Using a graph, show the impact of this situation on the real rate of interest in the short run (combine both money demand and money supply in one diagram).

(b) Explain what happens to investment and aggregate demand.

(c) Elaborate on THREE (3) ways to increase money supply through monetary policy

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