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. Consider the Poole model. Under the assumption that investment and money demand shocks are perfectly negatively correlated explain how an increase in the income

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Consider the Poole model. Under the assumption that investment and money demand shocks are perfectly negatively correlated explain how an increase in the income elasticity of money demand would affect the volatility of output when monetary policy is governed by (i) an interest rate rule; and (ii) a money-supply rule

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