When monetary policy alters the monetary base the money supply and interest rates will decrease it takes 6 months to 2 years to have its final effect on nominal GDP (in the US)

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 5CQ
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When monetary policy alters the monetary base
the money supply and interest rates will decrease
it takes 6 months to 2 years to have its final effect on nominal GDP (in the US)
real consumption will decrease
Oreal investment expenditures will decrease
Transcribed Image Text:When monetary policy alters the monetary base the money supply and interest rates will decrease it takes 6 months to 2 years to have its final effect on nominal GDP (in the US) real consumption will decrease Oreal investment expenditures will decrease
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