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If People Expect the Fed to Adopt A(n)________ for Several

Question 106

Multiple Choice

If people expect the Fed to adopt a(n) ________ for several years,the long-term expected real interest rate will remain ________.


A) contractionary monetary policy; low
B) expansionary monetary policy; low
C) contractionary fiscal policy; high
D) expansionary fiscal policy; low

Correct Answer:

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