Suppose the money offer Ms = 20. The demand for money, Md= Y(25-i), assuming that the equilibrium

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Suppose the money offer Ms = 20. The demand for money, Md= Y(25-i), assuming that the equilibrium income is equal to 100, determine: a) The equilibrium interest rate. b) Suppose that the Central Bank wishes to raise the interest rate by 10 percentage points, what should be the new offer Ms.

c) Plot (graph) conditions a and b.

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Posted Date: Jun 14, 2024 02:15 AM

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Suppose the money offer Ms = 20. The demand for money, Md= Y(25-i), assuming that the equilibrium

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