What are the two problems facing the bank of canada in, Ask an Expert

Economics

1. What are the two problems facing the Bank of Canada in trying to control the money supply precisely?

2. Using separate graphs, demonstrate what happens to money supply, money demand, the value of money and the price level if:

a. The Bank of Canada increases the money supply.

b. People decide to demand less money at each price level.

c. Banks decide to hold more excess reserves.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9161807

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