What will be the effects of an increase in the money supply

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Reference no: EM13253

1. What will be the effects of an increase in the money supply on the interest rate? What will be the effects of an increase in real output on the interest rate?

2. Explain the effects of a permanent increase in the U.S. money supply in the short run and in the long run. Assume that the U.S. real national income is constant.

Reference no: EM13253

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