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Use the diagram of Money Supply and Money Demand to illustrate the direction of the long-run effects of the following changes in the economy on
Use the diagram of Money Supply and Money Demand to illustrate the direction of the long-run effects of the following changes in the economy on the price level and the real interest rate, according to the quantity theory of money. (note: no need to show the diagram here) 1) The Fed increases the minimum reserve ratio. 2) The Fed prints more money and uses it to buy government bonds from the public
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