Question: 1. Suppose there is a permanent reduction in aggregate real money demand, that is, a negative shift in the aggregate real money demand function. Trace

 1. Suppose there is a permanent reduction in aggregate real money

1. Suppose there is a permanent reduction in aggregate real money demand, that is, a negative shift in the aggregate real money demand function. Trace the short-run and long-run effects on the exchange rate, interest rate, and price level

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