When the growth rate of the money supply is decreased, interest rates will fall immediately if the liquidity effect is _____  than the other money supply effects and there is _____ adjustment of expected inflation.   Question 18 options:   larger; fast   larger; slow   smaller; slow   smaller; fast

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
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
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 8CQ
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When the growth rate of the money supply is decreased, interest rates will fall immediately if the liquidity effect is _____  than the other money supply effects and there is _____ adjustment of expected inflation.

 

Question 18 options:

 

larger; fast

 

larger; slow

 

smaller; slow

 

smaller; fast

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