17. When the economy enters a recession, either a free reserve target or an interest-rate target will

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17. "When the economy enters a recession, either a free reserve target or an interest-rate target will lead to a slower rate of growth for the money sup- ply." Explain why this statement is true. What does it say about the use of free reserves or interest rates as targets?

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Financial Markets and Institutions

ISBN: 978-0321280299

5th edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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