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Q5. Building on Figures 13.5 and 13.6, show how equilibrium in the money market would change: a. If money demand is less sensitive to the

Q5. Building on Figures 13.5 and 13.6, show how equilibrium in the money market would change: a. If money demand is less sensitive to the interest rate or b. If there is a greater responsiveness of money demand to changes in income.

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