2. Suppose that changes in bank regulations expand the availability of credit cards, so that people need

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2. Suppose that changes in bank regulations expand the availability of credit cards, so that people need to hold less cash.

a. How does this event affect the demand for money?

b. If the Fed does not respond to this event, what will happen to the price level?

c. If the Fed wants to keep the price level stable, what should it do?

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Principles Of Macroeconomics

ISBN: 9780324171891

3rd Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 27, 2024 07:01 AM

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2. Suppose that changes in bank regulations expand the availability of credit cards, so that people need

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Principles Of Macroeconomics

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