How P responds to△πe Lrta,Y) M For given values of y,and M, ↑xe→↑i(the Fisher effect) ↓(M/P) → 个to make(M/P)fall to re-establish eg'm Return CHAPTER 7 Money and Inflation slide 39 CHAPTER 7 Money and Inflation slide 39 How P responds to  e ( , ) M e L r Y P = +  (the Fisher effect) e     i ( ) d   M P to make fall ( ) to re-establish eq'm   P M P ▪ For given values of r, Y, and M , Return