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If the Fed increases the growth rate of the money supply and market participants expect this to cause an increase in the rate of inflation

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If the Fed increases the growth rate of the money supply and market participants expect this to cause an increase in the rate of inflation in the long- run, the short-run impact on the yield curve will be that O both short-term and long-term interest rates increase by the same amount O both short-term and long-term decrease by the same amount short-term interest rates decrease more than long-term interest rates short-term interest rates increase more than long-term rates

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