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(a) rich and poor; (b) borrowers and lenders; (c) old and young? THE TRANSMISSION MECHANISM OF MONETARY...

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(a) rich and poor;

(b) borrowers and lenders;

(c) old and young?

THE TRANSMISSION MECHANISM OF MONETARY POLICY 205 transmission mechanism of monetary policy interest rate control monetary base control cost of borrowing inflationary expectations real money balances portfolio effects wealth effects speculative demand for money normal rate of interest liquidity trap net wealth of the private sector

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