Assume the money-demand curve is MD-155-14r + Y, the price level depends on r according to...
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Assume the money-demand curve is MD-155-14r + Y, the price level depends on r according to the equation P=65-12 r, and the money supply is MS = 125. Find a relationship between the price level P and output Y and show that the relation that you have found is an aggregate demand function. Assume the money-demand curve is MD-155-14r + Y, the price level depends on r according to the equation P=65-12 r, and the money supply is MS = 125. Find a relationship between the price level P and output Y and show that the relation that you have found is an aggregate demand function.
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The money demand curve is given by MD 15514r Y The money supply is given by MS 125 The price level d... View the full answer
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