Explain the relationship between savings and investment

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Reference no: EM13974747

a) What is money supply?

b) Explain the tools Bank of Canada can use to alter the amount of money in circulation.

c) Why is the money demand curve downward sloping?

d) Explain the relationship between savings and investment.

e) Use suitable diagrams to show how the Bank of Canada can pursue expansionary and contraction monetary policy.

Reference no: EM13974747

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