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Ultimately, how would you expect this change in the federal funds rate to affect the long-term'real interest rate, employment, and the money supply? Walk through
Ultimately, how would you expect this change in the federal funds rate to affect the long-term'real interest rate, employment, and the money supply? Walk through the steps. The decrease in the federal funds rate causes long-term nominal and real interest rates to decrease, this causes the growth rate of consumption and investment to growth rate of employment to this causes the growth rate of loan origination by private banks and deposits at private banks to supply (M2) to X
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