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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 196

Question 196

Multiple Choice

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


A) fluctuate randomly.
B) remain the same.
C) decrease.
D) increase.

Correct Answer:

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