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Solve this problem below Money market: Demand for money, Ma/P : M /P = 1 - 1(r+ me) + KY Where 1, K, Ite >

Solve this problem below

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Money market: Demand for money, Ma/P : M /P = 1 - 1(r+ me) + KY Where 1, K, Ite > 0, Money supply = M/P a) Derive the LM curve b) Using IS-curve and LM-curve, as above, find the equilibrium price level and interest rate (hint: equilibrium output = Y,)

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