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vellojo vellojo
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Posts: 2982
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7 years ago
Suppose that the Federal Reserve is expected to expand the quantity of money by 5 percent but ends up expanding it by only 2 percent. If the new Keynesian theory is correct, which of the following describes the effect on the economy?
A) A recession will ensue.
B) Inflation will be higher than expected.
C) Workers' decisions about when to work will be affected.
D) The economy experience a boom because the quantity of money is still growing.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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yaderayadera
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Posts: 492
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7 years ago
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vellojo Author
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#2
7 years ago
Thank you for this

Comes at the right time too!

Good luck on your exams
Studying economics @ Edinburgh U
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