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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
What is equilibrium interest rate?
Assume the price level is fixed
what happens to equilibrium interest rate if the supply of money is raised from 100 to 1200
If the central bank was to raise the interest rate to 7% what money supply should it set?
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