What happens to the money supply and money demand
Problem
Using a graph, demonstrate what happens to the money supply, money demand, the value of money, and the price level if the Bank of Canada increases the money supply.
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Demonstrate what happens to the money supply, money demand, the value of money, and the price level if the Bank of Canada increases the money supply.
Write out a national saving and investment identity for this economy. What will be the balance of trade in this economy?
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