If the Fed is able to maintain an expansionary monetary policy for a long period of time, then ________.

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If the Fed is able to maintain an expansionary monetary policy for a long period of time, then ________.

If the Fed is able to maintain an expansionary monetary policy for a long period of time, then ________.

▸ the M2 measure of money decreases

▸ the real interest rate increases

▸ banks make fewer loans

▸ bank deposits increase

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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