Please answer the questions with citations and references

Answer the following questions: Activity 1- Write answers in your own words. ( $ Marks) Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash. A) How does this event affect the demand for money? B) B) If the Bank of Canada does not respond to this event, what will happen to the price level? C) C) If the Bank of Canada wants to keep the price level stable, what should it do? Activity 2- Open Economy Article: Application of the open-economy macro model to world events. Note: Find appropriate topics-interest rate changes, changes in net capital ouglow, changes in nel exports. Steps to complete this activity: (10 Marks) 1. Find an article in a recent newspaper or magazine illustrating a change that will affect net capital outflow or net exports. 2. Explain how and why net capital outflow or net exports would shift