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Business, 03.12.2021 19:10 MarlonJ02

5) The Fed increases the nominal money supply so M=144,000. The price level is constant at 120. Find the equilibrium with the increase in the nominal money supply. Answer : The real interest rate is [A]% and the output level is [B] in the new equilibrium. Because the output level is the same as the full-employment output, this equilibrium is a [C] (general, short-run, long-run) equilibrium which is stable.

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5) The Fed increases the nominal money supply so M=144,000. The price level is constant at 120. Find...
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