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Munze Munze
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6 years ago
An open market purchase of bonds by the central bank will cause which of the following when a liquidity trap situation exists?
A) the interest rate will decrease.
B) the interest rate will not change.
C) output will increase.
D) the money supply, M, will not change.
E) none of the above
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Macroeconomics

Macroeconomics


Edition: 6th
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Macroeconomics, 6/E (Blanchard, Johnson)
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legendvpnlegendvpn
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6 years ago
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Munze Author
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#2
5 years ago
Extremely insightful, tysm
Macroeconomics, 6/E (Blanchard, Johnson)
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