When the growth rate of the money supply is increased, interest rates will fall immediately if the liquidity effect is ______(larger or smaller) than the other money supply effects and there is _____ (slow or fast) adjustment of expected inflation.
When the growth rate of the money supply is increased, interest rates will fall immediately if the liquidity effect is ______(larger or smaller) than the other money supply effects and there is _____ (slow or fast) adjustment of expected inflation.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter14: Money And The Economy
Section14.4: Money And Interest Rates
Problem 2ST
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When the growth rate of the money supply is increased, interest rates will fall immediately if the liquidity effect is ______(larger or smaller) than the other money supply effects and there is _____ (slow or fast) adjustment of expected inflation.
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