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Business, 27.10.2019 11:43 OreoShark

If the economy is at full employment and the federal reserve undertakes a policy of increasing the money supply at a constant rate of 6% while the production of goods and services is at 2% what would you expect to happen?

a. interest rates will go down and employment will increase

b. the government budget will run a surplus

c. inflation

d. the government budget will run a deficit and the federal reserve will monetize the debt.

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