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1. Suppose that the money market equilibrium equation mi - P: = -QB.[pot1 - p.] where o > 0, and the money supply is governed

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1. Suppose that the money market equilibrium equation mi - P: = -QB.[pot1 - p.] where o > 0, and the money supply is governed by the process my1 = Am+ (1 -X)m +ett1; Elet+1 = 0 where m is a constant. Using any method of solution, derive the solution for the current price level Pt

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