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Essay questions TUTORIAL 6 Essay Question 1. Explain the motivation for holding money, based on the ideas of Keynes. 2. Discuss the negative relationship between

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Essay questions

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TUTORIAL 6 Essay Question 1. Explain the motivation for holding money, based on the ideas of Keynes. 2. Discuss the negative relationship between the interest rate and the quantity of money holdings. 3. Suppose the equilibrium interest rate is 4% and the market interest rate is 3.5%. Graphically explain how the money market will make its adjustment

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