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Graph the supply and demand for real money balances

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Reference no: EM13335807

It is given that the money demand fucntion is (m/p)d=1000-100r, where r is interest rate in percent. The money supply(M) is 1000 and the price level(p) is 2.

a) graph the supply and demand for real money balances.

b) what's the equilibrium interest rate?

Reference no: EM13335807

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