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Effect on money demand

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If consumer sentiment suddenly improves: (Consumers and business suddenly expect economic growth to increase and consumers are more willing to spend.):

-What will be the effect on money demand, money supply, and interest rates? Please explain.

-What will be the effect on AE, and GDP? Please explain

-In the short-run: What will be the effect on AD and SRAS? What will be the effect on the average price level? Please explain.

-In the long-run: What will be the impact on GDP and the average price level?

Reference no: EM133125860

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