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As firms expect future profits to increase, they increase their investment. As a result, real GDP rises above potential GDP. If the Fed followed Friedman's
As firms expect future profits to increase, they increase their investment. As a result, real GDP rises above potential GDP. If the Fed followed Friedman's kminuspercent rule, the Fed would Question content area bottom Part 1 A. increase the quantity of money more than usual. B. decrease the quantity of money. C. continue allowing the quantity of money to grow at "k" percent. D. raise the federal funds rate. E. lower the federal funds rate
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