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Title: Suppose the Federal Reserve pursues contractionary monetary policy resulting in a reduction in money ...
Post by: Munze on Sep 15, 2017
Suppose the Federal Reserve pursues contractionary monetary policy resulting in a reduction in money growth. This reduction in money growth will result in which of the following?
A) lower nominal interest rates (i) in the medium run and no change in real interest rates (r) in the medium run
B) no change in (i) in the medium run and a reduction in r in the medium run
C) no change in (i) in the medium run and an increase in r in the medium run
D) an increase in (i) in the medium run and no change in r in the medium run


Title: Re: Suppose the Federal Reserve pursues contractionary monetary policy resulting in a reduction in ...
Post by: vonCOLLINZO on Sep 15, 2017
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