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1.How does the assumption regarding price level change according to the time horizon under consideration in the money market model? 2.In the short run, if

1.How does the assumption regarding price level change according to the time horizon under consideration in the money market model?

2.In the short run, if there is a shortage in the money market, how does the nominal interest rate change to clear the market?

3. In the short run, how does an increase in money supply affect the nominal interest rate?

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