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1. What would happen to the demand for money balances if interest rates increase? 2. If your income increases from $40,000/yr. to $45,000/yr., and your

1. What would happen to the demand for money balances if interest rates increase? 2. If your income increases from $40,000/yr. to $45,000/yr., and your expenditure increases from $33,000/yr. to $36,500/yr. Calculate your MPC

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