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Market for the economy of san pedro

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Reference no: EM131088670

Assume the money market for the economy of San Pedro is in equilibrium.

a) Using a diagram, graphically illustrate equilibrium in the money market.

b) Now suppose there is an increase in the price level. Explain and illustrate in the same diagram (as part a), the effect on an increase the price level. Draw diagram.

Reference no: EM131088670

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