What would you expect to happen to the long-run real, Finance Basics

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What would you expect to happen to the long-run real

Suppose a natural disaster wipes out a significant portion of the economy's capital stock, reducing the potential level of output.

What would you expect to happen to the long-run real interest rate?

What impact would this have on the monetary policy reaction curve and the dynamic aggregate demand curve?

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Finance Basics: What would you expect to happen to the long-run real

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Finance Basics: What would you expect to happen to the long-run real

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