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Assume both the quantity theory of money and absolute purchasing power holds. For each of the following state what will happen to the U.S. or
Assume both the quantity theory of money and absolute purchasing power holds. For each of the following state what will happen to the U.S. or European price level and the dollareuro exchange rate (E$/Euro). a. U.S. real GDP increases b. European money supply increases c. As a result of increased uncertainty in the world, U.S. money demand (L) increases
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