C. Think about the long-run effects of a permanent increase in the U.S. money supply. How will the below variables change in the long run compared to the initial equilibrium? Pick one option for each variable. (H stands for Home Country, aka the U.S.
MH |
Increase |
Decrease |
No change |
Cannot tell |
iH |
Increase |
Decrease |
No change |
Cannot tell |
PH |
Increase |
Decrease |
No change |
Cannot tell |
T
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