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    Macroeconomics Study Set 27
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    Exam 15: Monetary Policy
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    If the Economy Is at Potential Output and the Fed
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If the Economy Is at Potential Output and the Fed

Question 104

Question 104

Multiple Choice

If the economy is at potential output and the Fed increases the money supply, in the SHORT run interest rates will likely:


A) increase.
B) decrease.
C) remain constant.
D) fluctuate randomly

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