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Specification:

  • Monetary Policy

Click to read the article below and then answer the questions:

Yes, the US economy looks resilient now — but that may not last

  • What is the rule of thumb estimate given for relating an increase in the interest rate to its effect on aggregate demand?

  • How long does this effect take?

  • What fiscal policies are still impacting the US economy?

  • What is the effect of these policies on aggregate demand?

  • What do you predict will happen to aggregate demand next year? Why?

Ariel Slonim at MRU Econinbox

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