The governor of the Bank of Canada announces that over the next year, the rate of money

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The governor of the Bank of Canada announces that over the next year, the rate of money growth will be reduced from its current rate of 10% to a rate of 2%. If the governor is believed by the public but the Bank actually reduces the rate of money growth to 5%, predict what will happen to the inflation rate and aggregate output if the new classical view of the economy is correct.

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The Economics Of Money Banking And Financial Markets

ISBN: 9780321584717

4th Canadian Edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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