Question 4 (5 points) Given the following demand and supply for money, answer the following questions interest rate 4 Ms MJ Quantity of Money ( M ) 1. Indicate the equilibrium interest rate and quantity of money (in the above diagram) 2. Illustrate the following situation and its impact on the interest rate and money supply (i) the bank of Canada increases money supply as Christmas approaches. (ii) Canadian income increases more than expected.~ 3. Explain why investors want to invest more when interest rates drop.~ 4. Will a reduction in the demand for money shift the AE curve? (Yeso) ~ 5. Does money supply shrink if we use less currency notes and more debit cards ? ~