Determine exogenous enhance in the velocity of money, Macroeconomics

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Assume in country-A Central Bank cares only about keeping the price level stable & in country-B, its central bank cares only about keeping output & employment at their natural rates.

Determine how in the two country, their central bank would respond to

a) An exogenous enhance in the velocity of money.

b) An exogenous enhance in the price of oil.

 


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