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Everything else equal, if the growth rate of a country exceeds its sustainable r...

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Everything else equal, if the growth rate of a country exceeds its sustainable rate, the central bank

is likely to lower the interest rate thinking a slowdown is coming to offset this boom.

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will now identify this new rate as the sustainable rate and try to maintain it.

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will keep interest rates low to keep the momentum.

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is likely to raise interest rates to slow the rate of growth.

100%

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