Assume people and firms have rational expectations. Explain how each of the following events willl affect...

Assume people and firms have rational expectations. Explain how each of the following events willl affect aggregate output and the price level. Answer questions 13-16.13. The Fed announces it will decrease the required reserve ratio.14. Congress unexpected passes a bill that will immediately increase taxes.15. The Fed announces it will decrease the money supply.16. Without notice, OPEC decreases oil production by 20 percent.

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Rahul Sunny answered 2 years ago

Explain how each of the following events would affect the national budget deficit, as it is...

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Using appropriate diagrams explain how each of the following events would affect the market for bonds....

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For this discussion, assume that rational expectations theory is correct and that monetary policy is most...

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