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Suppose the central bank now employs an MP curve given by r = Compared to the initial MP curve r = 1+ , does

Suppose the central bank now employs an MP curve given by r =  Compared to the initial MP curve r = 1+ , does

Suppose the central bank now employs an MP curve given by r = Compared to the initial MP curve r = 1+ , does this represent a loosening or tightening of monetary policy? Explain why, using = 3% as a reference point.

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Compared to the initial MP curve r 1 the new MP curve r t with t 3 represents a loosening of monetary policy Heres why Interest Rate Levels In the ori... blur-text-image

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