Question: Using a diagram, explain how money supply is determined. 4. Explain the factors affecting the banking mark-up. 5. Using the 3-equation model for the banking

Using a diagram, explain how money supply is determined. 4. Explain the factors affecting the banking mark-up. 5. Using the 3-equation model for the banking system, explain the central bank strategy to achieve its targeted levels of inflation and output when there is a decrease in consumption that alter the lending rate in the banking system

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