For a given level of inflation expectations, if the central bank increases the money supply growth...

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For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short ru

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Answer 1

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This will not shift the philip curve but increase the inflation in the market by increasing the demand in the market. This will cause a movement up along the short run philip curve. The answer is "C".

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Answer 2

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In the long run, an increase in the money supply growth rate? A.reduces expected inflation so...

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