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e. Now assume that full employment income Yf is below equilibrium YE just calculated. i. What problem(s) for the economy can the Fed anticipate? ii.

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e. Now assume that full employment income Yf is below equilibrium YE just calculated. i. What problem(s) for the economy can the Fed anticipate? ii. What policy would the Fed carry out to avoid such problem(s). iii. What is the effect of such policy (given the above model) on mvestment: increase or decrease or no change or indeterminate on consumption: increase or decrease or no change or indeterminate

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