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For this question, assume that the economy is initially operating at the natural level of output.A one-time 5% reduction in the nominal money supply will
For this question, assume that the economy is initially operating at the natural level of output.A one-time 5% reduction in the nominal money supply will cause:
a.a 5% reduction in the price level in the medium run
b.a 5% increase in the interest rate (i) in the medium run
c.a 5% reduction in the real money supply in the medium run
d.all of the above
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