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Tut 6, Tut 8: Monetary and fiscal policy, Tut 7 - Coggle Diagram
Tut 6
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Nominal interest rate After tax =nominal interest rate - tax rate x nominal interest rate
=> After tax interest rate= Nominal interest rate After tax- inflation rate
MV=PY
At the equilibrium: Money demand=M
V= velocity
P=the price level
Y=The quantity of output
M= the quantity of money
PxY= nominal value of output
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