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Suppose the Fed Increased the Growth Rate of the Money

Question 108

Multiple Choice

Suppose the Fed increased the growth rate of the money supply.Which of the following would be higher 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

Correct Answer:

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