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Hi, could show your correct answer that address this question this question about the Monetary Policy (a)Your mother states that monetary policy is effective because

Hi, could show your correct answer that address this question this question about the Monetary Policy

(a)Your mother states that monetary policy is effective because firms quickly react to changes in interest rates by altering their investment decisions. Do you agree or disagree with her statement? Justify your answer.

(B) Is money targeting a better tool for central banks to use in the highly recessionary COVID-19 period where inflation has essentially disappeared as a policy issue? Briefly explain your reasoning.

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