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(d) Imagine now that due to an increase in financial sophistication in Attica the demand for money becomes sensitive to the interest rates so that

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(d) Imagine now that due to an increase in financial sophistication in Attica the demand for money becomes sensitive to the interest rates so that in place of the quantity theory equation, we have (M/P) = H - KR, where d, H and k are constant parameters. How are your answers to parts (a) to (c) above affected by this development? Is money neutral, and/or supernatural in Attica

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