In late1969, the Federal Reserve reduced the money supply while the government raised taxes. What do you

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In late1969, the Federal Reserve reduced the money supply while the government raised taxes. What do you think should have happened to interest rates and aggregate output?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:33 AM

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In late1969, the Federal Reserve reduced the money supply while the government raised taxes. What do you

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Aggregate output should have declined while the effect on the interest rate is uncertain T...View the full answer

Economics of Money, Banking and Financial Markets

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