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Business, 22.07.2020 21:01 jellyangie1

Suppose that in Mysore, the reserve—deposit ratio is res = 0.5 - 2i, where i is the nominal interest rate. The currency—deposit ratio is 0.2 and the monetary base = 100. The real quantity of money demanded is given by the money demand function L(Y, i) = 0.5Y - 10i, where Y is real output. Currently, the real interest rate is 5% and the economy expects an inflation rate of 5%. The money supply =

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Suppose that in Mysore, the reserve—deposit ratio is res = 0.5 - 2i, where i is the nominal interest...

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