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Show the impact in the phillips curve

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Reference no: EM131049033

Quantity Theory of Money: According to the Monetarists and Rational Expectations, explain what happens, step by step, when the Federal Reserve sells US treasury bills to US banks. Describe the impact in words and:

i) Show the impact in the AD/AS graph

ii) Show the impact in the Phillips curve. (Include Short-run and Long-run)

c) What is the difference between the Keynesian view and Monetarist/Rational Expectations view on the short run and long run effects of discretionary monetary policy?

Reference no: EM131049033

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