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Boris and natasha disagree over matter of monetary policy

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Reference no: EM132130061

Boris and Natasha disagree over matter of monetary policy. Natasha claims that monetary policy is useless because money is neutral. Boris claims that increasing the money supply is good for the economy because it lowers interest rates and that makes borrowing cheaper.

Is either one right? Are both wrong? Choose the person you believe is correct and explain why you support that claim.

Reference no: EM132130061

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