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Value of 3/4 2 E2 money 1/2 E1 1/4 4 2 Trillion Quantity of $ (trillions)9. Using separate graphs for each situation, demonstrate what happens
Value of 3/4 2 E2 money 1/2 E1 1/4 4 2 Trillion Quantity of $ (trillions)9. Using separate graphs for each situation, demonstrate what happens to money supply, money demand, the value of money, and the price level under each of the following situations. Briefly explain. (a) The Bank of Canada decreases the money supply. (6 marks) (b) People decide to demand more money at each price level. (6 marks) (c) Banks decide to hold fewer excess reserves. (6 marks)
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