In this problem, we are going to use the money market to model two real world events:i) a portfolio shock to money demand and ii) a shock to the money multiplier.Suppose you have the following information:Original money demand function:Md = P X [ 200 + .5 Y – 200 i]where P = 1 (P remains constant in this problem), Y = 1600, Ms = 600, MB = 400 MM=1.5

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