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3. In a particular economy the real money demand function is: Md P = 3000 +0.1Y 10, 000. - 1 Assume that M =
3. In a particular economy the real money demand function is: Md P = 3000 +0.1Y 10, 000. - 1 Assume that M = 6000, P = 2.0, and = relevant steps to show your work. 0.02. Equations and graphs are a part of a. What is the real interest rate, r, that clears the asset market when Y = 8000? When Y = 9000? Graph the LM curve (10 points). I b. Repeat Part (a) for M = 6600. How does the LM curve in this case compare with the LM curve in part (a)? (10 points). c. Use M = 6000 again and repeat Part (a) for e: this case with the one in Part (a) (15 points). = 0.03? Compare the LM curve in
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