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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985
BuyFind

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985

Solutions

Chapter
Section
Chapter 12, Problem 2PA
Textbook Problem

Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash.

a. How does this event affect the demand for money?

b. If the Fed does not respond to this event, what will happen to the price level?

c. If the Fed wants to keep the price level stable, what should it do?

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Chapter 12 Solutions

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