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    Principles of Economics Study Set 8
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    Exam 35: The Short-Run Tradeoff Between Inflation and Unemployment
  5. Question
    A Central Bank Can Reduce Inflation by Reducing Money Supply
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A Central Bank Can Reduce Inflation by Reducing Money Supply

Question 141

Question 141

True/False

A central bank can reduce inflation by reducing money supply growth, but it necessarily does so at the cost of permanently raising the unemployment rate.

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