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April 21, 2014

Homework Help: Macroeconomics

Posted by John on Tuesday, June 15, 2010 at 11:38pm.

Assume that the economy’s real GDP is growing. What will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over time? If the Fed changes the money supply to match the change in money demand, what will happen to the interest rate over time?

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