Economics (MindTap Course List)
Solutions
Economics (MindTap Course List)
With respect to the interest rate,
- a. what is the liquidity effect?
- b. what is the price-level effect?
- c. what is the expectations effect?
(a)
The liquidity effect.
The liquidity effect is the change in the rate of int...
(b)
The price-level effect.
(c)
The expectations effect.
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