(a) Describe the components of equation Y = C+I+G+(X-M) with examples from a ‘real world’ economy (Australia or other).(posted 7268 days ago)(b) Using the demand and supply for money model, do the following:
(i) Show how interest rates are determined.
(ii) Show the effect in your graph of an increase in the money supply and describe the money market adjustment process to a new equilibrium interest rate.