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(Solved): 3. The demand for money in a country is given by Md = 8000-8000i+Y Assume the output is initially 50 ...



3. The demand for money in a country is given by Md = 8000-8000i+Y Assume the output is initially 5000 C) Suppose output increases from 5000 to 6500. Show this change in your graph. What is the new equilibrium? D) If central bank wants to keep the interest rate the same as in part B. 



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