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ps10 - circumstances would be destabilizing 4 Suppose the...

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ECON 205: PRINCIPLES OF MACROECONOMICS FALL 2008 MARK MOORE PROBLEM SET 10 1. Baumol and Blinder, ch. 14, Test Yourself, problem 4. 2. Baumol and Blinder, ch. 14, Discussion Questions, problem 5. 3. Explain why a rigid interest rate target that never changed with economic
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Unformatted text preview: circumstances would be destabilizing. 4. Suppose the economy is in a recession, and that policymakers believe that action is warranted to stimulate the economy. Discuss the relative advantages of monetary and fiscal expansion as tools to increase output....
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