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Suppose We Interpret the Quantity Theory as a Money Demand

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Suppose we interpret the quantity theory as a money demand equation. The quantity theory of money equation can be transformed into a growth rate equation: ÄM/M + ÄV/V = ÄP/P + ÄY/Y. If the velocity of money and real GDP are constant, calculate the elasticity of the demand for money with respect to the price level.


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