In each of the following instances, an exogenous change is described. Use a graph to show how
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In each of the following instances, an exogenous change is described. Use a graph to show how the particular exogenous change can result in an increase in the equilibrium return on deposits.
a. A permanent increase in the money growth rate.
b. A permanent increase in the productivity of capital
c. A permanent decrease in the cost of identification to a bank.
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Related Book For
Modeling Monetary Economies
ISBN: 978-1107145221
4th Edition
Authors: Bruce Champ, Scott Freeman, Joseph Haslag
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