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Suppose the demand for money is given by .1Y - 10R. Suppose that Y Full = 800 and R = 5. Calculate the demand for

Suppose the demand for money is given by .1Y - 10R. Suppose that YFull= 800 and R = 5. Calculate the demand for money. Now suppose that inflation and expected inflation each rise by 2 percent, while YFullremains at 800. What happens to R?Calculate the inflation tax in this example.

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