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If the Fed uses monetary policy to reduce the money supply andinflation, inflation expectations would increase/ decrease/ or remain the same?

  1. If the Fed uses monetary policy to reduce the money supply and​ inflation, inflation expectations would increase/ decrease/ or remain the same?


.2. Assume that inflation expectations decrease. What will happen to the​ short-run Phillips​ curve? The​ short-run Phillips curve will shift to the right/ or left?


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1. Inflation expectations would... View the full answer

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