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Q: a) Select from price level; nominal interest rate to fill in the following blanks

Economics

Q:

a) Select from price level; nominal interest rate to fill in the following blanks.

In the short-run asset approach, the ______ adjusts to bring the money market to equilibrium. In the long-run monetary approach, the ______ adjusts to bring the money market to equilibrium. (10 pts)

b) What is the balance of payments (BOP)? Briefly explain. (10 pts)

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