Question
If the money demand function is given by (M/P) d =kY, in the classical model of the LR and very LR, a one-time increase in
If the money demand function is given by (M/P)d=kY, in the classical model of the LR and very LR, a one-time increase in money supply will
I. lead to a one-time increase in the general price level.
II. not change the real GDP.
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Macroeconomics
Authors: Charles I. Jones
4th Edition
393603767, 393603768, 9780393616125 , 978-0393603767
