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Show that the demand for real money balances may be either an increasing or decreasing function of the inflation rate Explain However make a case that for very high rates

Show that the demand for real money balances may be either an increasing or decreasing function of the inflation rate. Explain. However, make a case that for very high rates of inflation, the demand for money is likely to go to zero (in particular, show what happens as Π goes to infinity).

May 07 2020 View more View Less

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