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Question 6 Under the flexible-price monetary approach, what is the long-run effect of a rise in the future rate of domestic money supply growth rate

Question 6 Under the flexible-price monetary approach, what is the long-run effect of a rise in the future rate of domestic money supply growth rate on (i) the domestic interest rates?; (ii) the price level?; and (iii) the domestic currency? [20 marks]

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