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Munze Munze
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6 years ago
Suppose the Federal Reserve pursues contractionary monetary policy resulting in a reduction in money growth. This reduction in money growth will result in which of the following?
A) lower nominal interest rates (i) in the medium run and no change in real interest rates (r) in the medium run
B) no change in (i) in the medium run and a reduction in r in the medium run
C) no change in (i) in the medium run and an increase in r in the medium run
D) an increase in (i) in the medium run and no change in r in the medium run
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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1 Reply
Macroeconomics, 6/E (Blanchard, Johnson)
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vonCOLLINZOvonCOLLINZO
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6 years ago
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Munze Author
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6 years ago
Good timing, thanks!
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Yesterday
Brilliant
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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