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:
Cold Weather Blues
A colloquial term often used to describe feelings of depression or sadness that some individuals experience during cold weather months.
Hyperactivity
A condition characterized by excessive movement, impulsivity, and difficulty maintaining attention.
Bipolar
A mental health condition characterized by significant mood swings, including manic (high) and depressive (low) episodes.
Mania
A state of abnormally elevated or irritable mood, arousal, and energy levels, often associated with bipolar disorder.
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