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Problem II Use the diagram of Money Supply and Money Demand to illustrate the direction of the long-run effects of the following changes in the

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Problem II Use the diagram of Money Supply and Money Demand to illustrate the direction of the long-run effects of the following changes in the economy on the price level and the real interest rate, according to the quantity theory of money (a) The Fed decreases the minimum reserve ratio. (b) The Fed purchases government bonds from the public (c) Expansion of Real GDP (d) Improvement Financial technology

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