13. Suppose real income increases. Assuming other things remain unchanged, what im pact will this change have
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13. Suppose real income increases. Assuming other things remain unchanged, what im¬ pact will this change have on the equilib¬ rium interest rate? Could the Fed change the monetary base in such a way as to off¬ set the effect of higher real income on the interest rate? Explain.
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Money Banking And Financial Markets An Economic Approach
ISBN: 9780395643952
1st Edition
Authors: Michael R. Baye, Dennis Jansen
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