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:
Libertarians
Individuals who advocate for minimal governmental intervention in personal and economic matters, emphasizing personal freedom and autonomy.
New Conservatives
A political movement that emerged in the late 20th century, emphasizing traditional values, free-market capitalism, and a strong national defense.
Freedom
The state of being free, especially in terms of personal rights and liberty, unimpeded by oppression or arbitrary restrictions.
NAACP Lawyer
A legal professional affiliated with the National Association for the Advancement of Colored People, specializing in cases pertaining to civil rights and racial justice.
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