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Question
Suppose the economy is in long -run equilibrium. The Fed changes its policy and lowers the differential between the discount rate and the federal funds rate. In the long run we would expect to observe
A) a lower price level.
B) a higher price level.
C) a lower real GDP.
D) a higher real GDP.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Q:
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Q:
Which of the following statements is FALSE?
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Q:
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Q:
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