10 In problem 7, a financial innovation changes the demand for money. People plan to hold 0.5...
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10 In problem 7, a financial innovation changes the demand for money. People plan to hold £0.5 billion less than the numbers in the spreadsheet. a What happens to the interest rate? b What happens to the interest rate if at the same time as the change in the demand for money, the supply of money decreases by £0.5 billion? Explain.
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