The spreadsheet provides information about the demand for money in Minland. Column A is the nominal interest

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The spreadsheet provides information about the demand for money in Minland. Column A is the nominal interest rate, r. Columns B and C show the quantity of money demanded at two values of real GDP: Y0 is $10 billion and Y1 is $20 billion. The quantity of money supplied is $3 billion. Initially, real GDP is $20 billion.
What happens in Minland if the interest rate
(i) Exceeds 4 percent a year and
(ii) Is less than 4 percent a year?
The spreadsheet provides information about the demand for money in
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Macroeconomics Canada in the Global Environment

ISBN: 978-0321778109

8th edition

Authors: Michael Parkin, Robin Bade

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