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Answer to Question #149592 in Macroeconomics for enny

Question #149592
Suppose the Bank Negara Malaysia change the quantity of money in the economy. How does this change affect the interest rate in the long run?
1
Expert's answer
2020-12-11T11:28:27-0500

If the Bank Negara Malaysia increases money supply, the nominal interest rate will increase. If the Bank decides to decrease money supply, the nominal interest rate will decrease and inflation increases.


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