Question: 1. Consider the real money demand. In three changes below, answer how the real money demand would change: Increase, Decrease, or No change. Interest rate

1. Consider the real money demand. In three changes below, answer how the real money demand would change: Increase, Decrease, or No change. Interest rate R rose? Real output Y fell: Price P fell: 2. Consider the real money supply. In three changes below, answer how the real money supply would change! Increase, Decrease, or No change. Interest rate R fell! Real output Y rose: Price P rose

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