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Suppose that the money demand function is: where r is the interest rate in percent. The money supply M is 3,000 and the price level P is fixed at 6. a. Graph
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Suppose that the money demand function is (M/P)d = 100 - 10r where r is the interest rate in percent. The money supply M is 100 and the price level P is
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Answers to Review Questions 1.What is a real money balance? If the nominal money supply increases 20 percent while prices increase 20 percent, what happens. - ppt download
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