For each of the following, explain whether the response is theoretically consistent with a tightening of monetary

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For each of the following, explain whether the response is theoretically consistent with a tightening of monetary policy and identify which traditional channel of monetary policy is at work:
a. Firms become more likely to undertake investment projects.
b. Households become less likely to purchase refrigerators and washing machines.
c. Net exports fall.

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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