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Say that investment increases by 20 for each interest rate

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Say that investment increases by 20 for each interest rate drop of one percent. Say also that the expenditures multiplier is 3. If the money multiplier is 4, and each 5 unit change in the money supply changes the interest rate by 1 percent, what open market policy would you recommend to increase income by 240?

Reference no: EM13319144

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