Suppose that changes in bank regulations expand the availability of credit cards so that people can hold

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Suppose that changes in bank regulations expand the availability of credit cards so that people can 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: 9780357133491

9th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 28, 2024 08:01 AM

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Suppose that changes in bank regulations expand the availability of credit cards so that people can hold

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Principles Of Macroeconomics

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