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Business, 26.10.2021 22:50 flamingtacos4026

Below are questions that compare the effects of shocks to the money market. H stands for home country. Home country is U. S. for example. 1. Think about the short run-effects of a temporary increase in the U. S. money supply.

a. Illustrate your answer graphically.
b. How will the below variables change in the short run compared to the initial equilibrium? Pick one option for each variable

MH IIncrease Decrease No change Cannot Tell
iH Increase Decrease No change Cannot Tell
Ph Increase Decrease No change Cannot Tell

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