Suppose real money demand is L =0.8 Y- 100,000 (r + pe). If the nominal money supply is 12,000, real output is 15,000, the real interest rate is .02, and the expected inflation rate is .01, then the price level is
(a) 3/4
(b) 1
(c) 4/3
(d) 3
Answer: C
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