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3 Suppose that the inflation rate is zero and the Fed raises the growth rate of the money supply to 596 . Assuming the public

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3 Suppose that the inflation rate is zero and the Fed raises the growth rate of the money supply to 596 . Assuming the public anticipates this increase in the growth rate of the money supply what point in the diagram above reflects the economy's new short - run equilibrium ? ( A B C , or D )

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