5. The nominal interest rate is the opportunity cost of holding money. Thus, one might expect the...

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5. The nominal interest rate is the opportunity cost of holding money. Thus, one might expect the demand for money to depend on the nominal interest rate. If it does, then the price level depends on both the current quantity of money and the quantities of money expected in the future.

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Macroeconomics

ISBN: 9780716752370

5th Edition

Authors: N. Gregory Mankiw

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