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vellojo vellojo
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7 years ago
As firms expect future profits to increase, they increase their investment. As a result, real GDP rises above potential GDP. If the Fed followed Friedman's k-percent rule, the Fed would
A) continue allowing the quantity of money to grow at "k" percent.
B) decrease the quantity of money.
C) increase the quantity of money more than usual.
D) raise the federal funds rate.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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amishamish
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7 years ago
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vellojo Author
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#2
7 years ago
Checks out after I submitted my assignment Smiling Face with Open Mouth
Studying economics @ Edinburgh U
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