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Suppose the use of cryptocurrencies became widespread and commonplace for goods and services transactions. According to the short-run IS/LM model (with fixed prices and inflation
Suppose the use of cryptocurrencies became widespread and commonplace for goods and services transactions. According to the short-run IS/LM model (with fixed prices and inflation expectations), what would happen to (i) the real interest rate, (ii) real GDP, (iii) real consumption, and (iv) real investment? Illustrate the crypto shock in both the money demand/supply and IS/LM diagrams.
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