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Suppose the Fed Decreased the Growth Rate of the Money

Question 176

Multiple Choice

Suppose the Fed decreased the growth rate of the money supply. Which of the following would be lower in the long run?


A) Both the natural rate of unemployment and the inflation rate
B) The natural rate of unemployment, but not the inflation rate
C) The inflation rate, but not the natural rate of unemployment
D) Neither the natural unemployment rate nor the inflation rate

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