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Chako Chako
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Posts: 2948
8 years ago
Under sticky prices
A) a fall in the money supply keeps the interest rate intact to preserve money market equilibrium.
B) a fall in the money supply reduces the interest rate to preserve money market equilibrium.
C) a fall in the money supply does not affect the interest rate in the short run, only in the long run.
D) a fall in the money supply raises the interest rate to preserve money market equilibrium.
E) a fall in the money supply raises the interest rate to preserve money market equilibrium in the long run.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 141 times
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machukianmachukian
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Posts: 2946
8 years ago
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Chako Author
wrote...
8 years ago
Good answer, thank you
wrote...
8 years ago
Good luck
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