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Now, suppose that the public fully anticipates the fed's decision to decrease the money supply. assume the public also believes that the fed is firmly committed to carrying out this policy. according
Now, suppose that the public fully anticipates the fed's decision to decrease the money supply. assume the public also believes that the fed is firmly committed to carrying out this policy. according to rational expectations theory, when the economy is in long-run equilibrium, a fully anticipated decrease in the money supply will cause the economy to move