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Explain the market failure that you want to face

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Question 1: If the income of the economy increases slowly and the Central Bank wants to increase the money supply, it should lower interest rates. It is important that you graph and explain the market failure that you want to face and with which the monetary policy.

Question 2: If the money supply increases, you must increase the interest rate to clear the money market. It is important that you graph and explain the market failure that you want to face and with which the monetary policy.

Reference no: EM133300835

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