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    Macroeconomics Study Set 38
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    Exam 13: Stabilization Policy and the Asad Framework
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    If M = 1/2 in the Simple Monetary Rule and If
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If M = 1/2 in the Simple Monetary Rule and If

Question 38

Question 38

True/False

If m = 1/2 in the simple monetary rule and if inflation rises by 2 percent, interest rates should rise by 2 percent.

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