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A. How does monetary policy affect equilibrium GDP? How can it address the problem of recession or low growth? Inflation?
B. Other things being equal, what effect will each of the following have on the equilibrium rate of interest?
(a) an increase in the supply of money;
(b) an increase in the equilibrium level of national income;
(c) a decrease in the supply of money;
(d) a leftward shift of the asset demand for money.
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