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 of the traditional channels 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: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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