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Suppose U.S. real money demand (Lus) is given by Suppose U.S. real money demand (Lus) is given by Lus = 4Y us - 50OR$ where

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Suppose U.S. real money demand (Lus) is given by

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Suppose U.S. real money demand (Lus) is given by Lus = 4Y us - 50OR$ where U.S. real income (Yus), U.S. nominal money supply (Mus), the U.S. price level (Pus), the euro area price level (PEUR), the interest rate on euro-denominated deposits (RE) and the expected USD-EUR exchange rate Ees/ are given by the following table Yus Mus Pus PEUR RE 50 100 1 0.83 0.10

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