The gure below shows how interest rates respond over time to an increased rate of money supply growth. Interest Rate, i (a) (2 marks) According to this figure, is the liquidity effect larger than the other three effects? In addition, how fast is the adjustment of expected ination? (b) (7 marks) Explain your answer by describing how money demand or supply moves after each effect, and the overall effect on the interest rate. Use a money demand and supply graph in your