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In macroeconomics, suppose that the monetary authority’s goal is to stabilize aggregate output, but that it...

In macroeconomics, suppose that the monetary authority’s goal is to stabilize aggregate output, but that it cannot observe aggregate output in the short-run. If there are shocks to the demand for investment goods, would it be preferable for the monetary authority to target the interest rate or money supply in the short-run? Describe what would happen in the appropriate set of diagrams

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