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tarasen57 tarasen57
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4 years ago
Recall the Application about the possibility that the Federal Reserve's loose monetary policy was responsible for the housing boom during the 2000s to answer the following question(s).


According to this Application, economist John Taylor believes that if the Fed had not followed "easy money" policy during the early 2000s,

▸ housing starts would have declined quicker, accelerating the timing and severity of the housing bust.

▸ housing starts would have been much higher and the housing boom would have continued.

▸ housing starts would have been much lower and the housing boom and bust would have been avoided.

▸ housing starts would have stabilized, leading to a mild housing boom with no bust.
Textbook 
Macroeconomics: Principles, Applications and Tools

Macroeconomics: Principles, Applications and Tools


Edition: 7th
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ccnastopoulosccnastopoulos
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4 years ago
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tarasen57 Author
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Helped a lot
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