In earlier periods, the Fed targeted the money supply. More recently, the Fed has targeted the interest

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In earlier periods, the Fed targeted the money supply. More recently, the Fed has targeted the interest rate.
a. Which model best represents the United States today? Which model would you use in explaining earlier periods?
b. Use the IS–LM model to explain why the Fed cannot target the money supply and the real interest rate at the same time.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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