Consider the closed-economy model of the money market in which, the demand for real balances depends negatively on the nominal interest rate (2), and positively on disposable income (Y-7). That is, the money market is characterized by P M - L(i,Y-T). Suppose tax revenues, 7, are such that T = T()), T'(Y) > 0, so that the goods market is characterized by Y = E(Y,i-x', G.T(Y) ) What is the effect of an increase in T on i for a given level of P? Derive an expression for this effect and state the requisite assumptions to support the sign of your