Question: Explain these: a. Explain how an increase in the price level can affect the demand for money and aggregate demand. Use relevant graph analysis to

Explain these:

a. Explain how an increase in the price level can affect the demand for money and aggregate demand. Use relevant graph analysis to clarify your answer.

b. Explain how a decrease in the reserve requirement ratio by the central bank can affect changes in aggregate demand (at a fixed price level). Use relevant graph analysis to clarify your answer.

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