Business, 05.01.2022 03:00 khill21208
If the Fed reduces the money supply by 5 percent, then the real interest rate will:
A. be unaffected in both the short run and the long run.
B. rise in the short run but will fall below its original equilibrium level in the long run.
C. rise in both the short run and the long run.
D. rise in the short run but return to its original equilibrium level in the long run
Answers: 3
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If the Fed reduces the money supply by 5 percent, then the real interest rate will:
A. be unaffect...
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