Suppose Bangladesh Bank increases money supply, considering both short run and long run.   What will happen to the aggregate demand.  What will happen to the level of output and price level  What happens to the real interest rate.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter28: Monetary Policy And Bank Regulation
Section: Chapter Questions
Problem 4SCQ: If the central bank sells 500 in bonds to a bank that has issued 10,000 in loans and is exactly...
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2. Suppose Bangladesh Bank increases money supply, considering both short run and long run. 

 What will happen to the aggregate demand.
 What will happen to the level of output and price level
 What happens to the real interest rate.

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