The diagrams below illustrate two alternative approaches to implementing monetary policy.The economy begins in monetary equilibrium with the interest rate equal to 2% and the money supply equal to 
. 
FIGURE 28-1 Refer to Figure 28-1.If the Bank of Canada raises the target interest rate to 3%,as shown in part (i) ,then it must accommodate the resulting ________ in quantity of money demanded by ________ in financial markets.
Definitions:
Acquiring Corporation
A company that purchases or merges with another company to expand its business operations or to enter into new markets.
Consolidation
The process of combining two or more entities into a single entity, often to streamline operations and reduce costs.
Business Combination
The merger or acquisition of separate companies into a single enterprise, often to expand market share or leverage synergies.
Lease
A lease is a contractual agreement by which one party conveys property, land, services, or the use of assets to another for a specified time, often in return for a periodic payment.
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