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Suppose Kiteland is at the equilibrium you found in (a). Suppose Kiteland's real GDP increases so that the demand for money changes by 100 billion
Suppose Kiteland is at the equilibrium you found in (a). Suppose Kiteland's real GDP increases so that the demand for money changes by 100 billion yuks. The Kiteland Central Bank takes no actions. Show the effects of this event on your figure. What happens to the interest rate and the quantity of money in the economy
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
