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Suppose the central bank in a closed economy, that is currently in a long - run macroeconomic equilibrium, decreases the interest paid on reserves. What
Suppose the central bank in a closed economy, that is currently in a longrun macroeconomic equilibrium, decreases the interest paid
on reserves. What happens to prices and unemployment in the longrun?
Prices remain unchanged, while unemployment increases.
Prices remain unchanged, while remains unchanged.
Prices decrease, while unemployment remains unchanged.
Prices decrease, and unemployment increases.
Prices increase, and unemployment remains unchanged.
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