In each of the following instances, an exogenous change is described. Use a graph to show how

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In each of the following instances, an exogenous change is described. Use a graph to show how the particular exogenous change can result in an increase in the equilibrium return on deposits.
a. A permanent increase in the money growth rate.
b. A permanent increase in the productivity of capital
c. A permanent decrease in the cost of identification to a bank.

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Modeling Monetary Economies

ISBN: 978-1107145221

4th Edition

Authors: Bruce Champ, Scott Freeman, Joseph Haslag

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