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In This Problem We Try to Establish a Link Between

question 147

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In this problem we try to establish a link between the quantity equation,MᵈV = PY,and the money demand-money supply diagram (Mᵈ is the quantity of money demanded).In a graph having the price level P on the vertical axis and the quantity of money M on the horizontal axis and considering V and Y independent on the price level or the quantity of money demanded,draw the Mᵈ - P curve that is implied by the quantity equation.


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