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The demand for money is given by = $ (0.3 ), where $ = 100 and the supply of money is $20. a) What is

The demand for money is given by = $ (0.3 ), where $ = 100 and the

supply of money is $20.

a) What is the equilibrium interest rate?

b) What is the impact on the interest rate if central bank money is increased to $25?

Use the differentiation. Otherwise, you will get no points.

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