Question: answer with graphically diagram. Question 3 Explain in detail the process of Monetary Policy transmission of an increase in the cash interest rate. Use relevant

answer with graphically diagram.

answer with graphically diagram. Question 3 Explain in detail the process of

Question 3 Explain in detail the process of Monetary Policy transmission of an increase in the cash interest rate. Use relevant graphs to describe how a Central Bank action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should be used: (1) money supply and demand (2) investment demand schedule (3) AS/AD diagram. Interest rates is the variable that connects the first and second diagram)

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