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Posted: May 9th, 2023
Quantity Theory of Money: According to the Monetarists
Quantity Theory of Money: According to the Monetarists and Rational Expectations, explain what happens, step by step, when the Federal Reserve sells US treasury bills to US banks. Describe the impact in words and: i) Show the impact in the AD/AS graph ii) Show the impact in the Phillips curve. (Include Short-run and Long-run)c) What is the difference between the Keynesian view and Monetarist/Rational Expectations view on the short run and long run effects of discretionary monetary policy?
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