1) What is the central argument of the AD-AS model? What assumptions is that argument based...

1) What is the central argument of the AD-AS model? What assumptions is that argument based on?

2) The Fed seems to believe that interest rates determine whether you and others hold your money
as cash or in assets (e.g., certificate of deposit and other financial assets). What theory underlies this
belief and what does this theory say?

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Expert Solution

Rahul Sunny answered 1 year ago

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