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Answer to Question #89489 in Macroeconomics for Sofia Bale
Question #89489
Suggest you are recommending monetary policy. The economy is experiencing a sharp and prolonged inflationary trend. explain how the change you advocate would affect the cash rate
Expert's answer
If the economy is experiencing a sharp and prolonged inflationary trend, then contractionary monetary policy would be implemented to decrease money supply, so this change would increase the cash rate.
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