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Suppose that the Fed reduces the growth rate of money supply (mg). Using the quantity theory of money and the Fisher equation, explain how this
- Suppose that the Fed reduces the growth rate of money supply (mg). Using the quantity theory of money and the Fisher equation, explain how this change in the money growth rate might affect the inflation rate (pie), the growth rate of real GDP (yg), the real interest rate (r), and the nominal interest rate (i) in the long run.
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Bank Management
Authors: Timothy W Koch, Steven Scott MacDonald, S Scott MacDonald
6th Edition
0324289278, 9780324289275
