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This year, country E held politically sensitive parliamentary elections and the government of the incumbent ruling party temporarily increased public expenditure to enhance its popularity. The government financed the additional expenditure by getting the country’s central bank to print money to finance the additional expenditure. Assuming that P, P*, Y*, and T were exogenously given, what kind of impact must this policy have had on the real income and interest rate in country E?
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What is an innovator’s optimal strategic move when intellectual property protection is weak and complementary assets are tightly held?
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The Fed increased the supply of US dollars at an average rate of 6 percent per year over the 1980-2005 period. Based on the theory of production capacity, if the Fed had instead increased the money supply at the rate of 7 percent per year during that period, given other policies: (Select all that apply.)
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