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Money demand and money supply is given by (M/P)d =1000r and (M/P)S=1000 and the price level is 2 Graph the supply and demand for real

Money demand and money supply is given by (M/P)d =1000r and (M/P)S=1000 and the price level is 2

Graph the supply and demand for real money balances

Assume the price level is fixed

what happens to equilibrium interest rate if the supply of money is raised from 100 to 1200

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