2. Now assume that the Fed is following a policy of targeting the federal funds rate. What...

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2. Now assume that the Fed is following a policy of targeting the federal funds rate. What will the Fed do in the situation described in Problem 1 to keep the federal funds rate unchanged? Illustrate with a diagram.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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