A6-5. Suppose you always use your credit card for purchases. Your credit card limit must then...

A6-5. Suppose you always use your credit card for purchases. Your credit card limit must then be thought of as part of your money holdings. A6-6. In the long run, an economy that is open to capital flows can have investment greater than national saving. A6-7. A central bank that targets inflation would conduct an expansionary monetary policy when faced with a recessionary gap. A6-8. If the policy response discussed in A6-7 is mistimed, it risks becoming pro-cyclical rather than stabilizing.

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Rahul Sunny answered 1 year ago

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