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Scribs Scribs
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6 years ago
If there is a supply shock and there are full protection COLAs
A) the Fed must reduce the money supply and follow an extinguishing policy to prevent an inflationary spiral.
B) the Fed must increase the money supply and follow an extinguishing policy to prevent an inflationary spiral.
C) the Fed must reduce the money supply and follow an accommodating policy to prevent an inflationary spiral.
D) the Fed must increase the money supply and follow an accommodating policy to prevent an inflationary spiral.
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
Author:
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thecromthecrom
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6 years ago
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6 years ago
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