b) Let the interest elasticity of money demand be -0.4. Assume the real interest increases from 4% to 5%, and the money

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b) Let the interest elasticity of money demand be -0.4. Assume the real interest increases from 4% to 5%, and the money

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B Let The Interest Elasticity Of Money Demand Be 0 4 Assume The Real Interest Increases From 4 To 5 And The Money 1
B Let The Interest Elasticity Of Money Demand Be 0 4 Assume The Real Interest Increases From 4 To 5 And The Money 1 (10.82 KiB) Viewed 22 times
b) Let the interest elasticity of money demand be -0.4. Assume the real interest increases from 4% to 5%, and the money supply decreases from 500 to 570. All else equal, what would be the percentage change of the equilibrium price level.
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