Explain how your answers to Test Yourself Question 5 would differ if each of the assumptions changed.

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Explain how your answers to Test Yourself Question 5 would differ if each of the assumptions changed. Specifically, what sorts of changes in the assumptions would weaken the effects of monetary policy?

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Sep 01, 2012 02:48 AM

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Explain how your answers to Test Yourself Question 5 would differ if each of the assumptions changed.

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a If the demand for reserves were very sensitive to changes in the interest ...View the full answer

Macroeconomics Principles And Policy

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