Suppose oil prices jump up and the fed is completely
Suppose oil prices jump up and the Fed is completely accommodative: it keeps the real interest rate constant.
How must the Fed adjust the nominal interest rate? How must it adjust the money supply? Explain.
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suppose the economy starts with output at potential then a supply shock occurs oil prices rise sharply the fed is
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suppose oil prices jump up and the fed is completely accommodative it keeps the real interest rate constanthow must the
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suppose again that oil prices increase this has two effectsa firms costs jump up andb because more of consumers income
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