During a recovery we observe interest rates tend to _______________(increase/decrease) banks hold _______(more/less) ER _________(more/less) money creation ____________(increase/decrease) in aggregate demand can _______________(increase/decrease) the inflation.

During a recovery we observe interest rates tend to ___________(increase/decrease) banks hold _(more/less) ER _(more/less) money creation (increase/decrease) in aggregate demand can _________(increase/decrease) the inflation.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 1CQQ

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Question

During a recovery we observe

interest rates tend to _______________(increase/decrease)

banks hold _______(more/less) ER

_________(more/less) money creation

____________(increase/decrease) in aggregate demand

can _______________(increase/decrease) the inflation.

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