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Answer to Question #206803 in Macroeconomics for Saleem

Question #206803

Discuss monetary policy effectiveness in New Classical model.


1
Expert's answer
2021-06-14T13:28:45-0400

New Classical model is pioneered to improved level of productivity and satisfaction.Monetary policy effectiveness in New Classical model is that low interest rate reduces the cost of borrowing .This attracts people to take loans for investment there by increasing productivity and satisfaction.


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