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Suppose that the household nominal income in an economy is 5,000 billion and the demand for money is given by : Md = Y(0.08 -

Suppose that the household nominal income in an economy is 5,000 billion and the demand for money is given by :

Md = Y(0.08 - 0.4i)

Let the money demand is equal to 100 billion.

How much interest rate in percentage value needs to be reduced if the central bank

wants to increase the money supply to 300 billion?

ANS =

Blank 1. Fill in the blank, read surrounding text.

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