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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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Macroeconomics, 6/E (Blanchard, Johnson)
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vonCOLLINZOvonCOLLINZO
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