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Some economists claim that the government should always use monetary policy to stabilize (or target) the real interest rate in the short-run if they also
Some economists claim that the government should always use monetary policy to stabilize (or target) the real interest rate in the short-run if they also wish to keep the resulting impact on (changes to) consumption to a minimum. Is this claim true, false or uncertain? Explain by using words and one IS/LM diagram. (5 points)
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