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- Which of the following will not affect the money market? O a. Money supply O b. Price of one good c. Expansionary monetary policy O d. Contractionary monetary policyMany economists are worried that a high level of budget deficits may lead to inflationary monetary policies inthe future. Could these budget deficits have an effect onthe current rate of inflation?If the bank of Ghana engages in monetary expansion, i.e, it increases the money supply through open market operations: 1. what impact will the monetary expansion have on the output and interest? 2. What shift will it be, IS or LM or both?
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