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If the liquidity effect is smaller than the other effects and the adjustment to expected inflation is slow then the interest rate will fall interest rate will rise interest rate will

If the liquidity effect is smaller than the other effects, and the adjustment to expected inflation is slow, then the... A) interest rate will fall. B) interest rate will rise. C) interest rate will fall immediately below the initial level but eventually rise above that level. D) interest rate will rise immediately above the initial level when the money supply grows.

Apr 02 2020 View more View Less

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