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Shifting the LM curve 1. Suppose a wave of credit card fraud causes consumers to use cash more frequently in transactions. Use the Liquidity Preference

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Shifting the LM curve 1. Suppose a wave of credit card fraud causes consumers to use cash more frequently in transactions. Use the Liquidity Preference model to show how these events shift the LM cu rue. Suppose households decide to hold more of their money as currency and less in the form of demand deposits. Determine impact on money supply. Explain the intuition for your result

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