Suppose there is a reduction in aggregate real money demand, that is, a negative shift in the

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Suppose there is a 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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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:44 PM

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Suppose there is a reduction in aggregate real money demand, that is, a negative shift in the

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International Economics Theory and Policy

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