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Assume in country-A Central Bank cares only about keeping the price level stable & in country-B, its central bank cares only about keeping output & employment at their natural rates.
Determine how in the two country, their central bank would respond to
a) An exogenous enhance in the velocity of money.
b) An exogenous enhance in the price of oil.
In the view of above complications, there is a long-standing debate on whether the fiscal policy should be active or passive in nature. Note that in the Keynesian context; even a p
It is online assignement, Can u do it?
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