How much the fed expanded the money supply

Reference no: EM13187553

suppose the Fed expands the money supply, but because the public expects this Fed action, it simultaneously raises its expectation of the price level. What will happen to output and the price level in the short run? Compare this result to the outcome if the Fed expanded the money supply but the public didn't change its expectation of the price level?

Reference no: EM13187553

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