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c. Domestic money demand shocks: d. Money demand shocks in a large foreign economy? 2. For cases a-d in question 1, what could monetary and
c. Domestic money demand shocks: d. Money demand shocks in a large foreign economy? 2. For cases a-d in question 1, what could monetary and fiscal policy makers do about he shocks? 3. Consider the same four cases for a small open economy with flexible exchange rates. low would the effects of the initial shocks differ? How would the policy re
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