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What are the consequences of an increase in the money supply

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Reference no: EM131857641

Discussion

1. In U.S. data, how sensitive is the demand for money to changes in nominal interest rates?

2. What are the consequences of an increase in the money supply on output and the price level? Does your answer depend on where the economy starts (whether it is in long-run equilibrium or not)?

Reference no: EM131857641

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