Suppose interest rates pick up in the next two months so


Suppose interest rates pick up in the next two months so that, in August 2017, banks flood the market with the excess reserves they've been holding since 2008. Illustrate this scenario with a perfectly-sticky AS-AD model and use the current monetary base to estimate the change in money balances needed to stabilize the economy.

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Business Economics: Suppose interest rates pick up in the next two months so
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