=+ 7. Suppose that the price level relevant for money demand includes the price of imported goods

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=+ 7. Suppose that the price level relevant for money demand includes the price of imported goods and that the price of imported goods depends on the exchange rate. That is, the money market is described by M/P = L(r, Y), where P = Pd + (1 − )Pf

/e.

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Macroeconomics

ISBN: 9781429240024

8th Edition

Authors: N Gregory Mankiw

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Question Posted: Sep 30, 2024 03:00 AM

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=+ 7. Suppose that the price level relevant for money demand includes the price of imported goods

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Macroeconomics

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