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points) Consider now adding a monetary sector to the model. Assume no change in the money supply. What impact does the transfer program have on
points) Consider now adding a monetary sector to the model. Assume no change in the money supply. What impact does the transfer program have on the rate of interest in the short run? Use a single diagram in your answer and add a brief explanation. f. (5 points) Now that there is a monetary sector, what can you say about the size of the transfer multiplier you calculated at 2d? Explanation only; no diagram required
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