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Question 3 (Total: 25 marks) Describe the effects of a decrease in the domestic demand for holding money on a country's domestic product and income

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Question 3 (Total: 25 marks) Describe the effects of a decrease in the domestic demand for holding money on a country's domestic product and income (Y) under floating exchange rates. Is the change in domestic product and income greater or less than it would be under fixed exchange rate? Discuss. (25 marks)

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