There has been an increase in the demand for liquidity (i.e. cash) due to  heightened uncertainty. Use the Currency in Circulation graph to answer the following questions. Do you think households increased cash holdings, proxied by money in circulation, due to the Covid-19 pandemic ? Discuss and justify your answer. Compare growth rates to justify your answer (e.g. Mar 2020- Mar 2021 look at month to month changes during the pandemic).

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