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Suppose Interest Rates Increase from 1 Percent to 3 Percent

Question 87

Multiple Choice

Suppose interest rates increase from 1 percent to 3 percent.In the short run,one can expect output in the United States to ________ and the price level to ________.


A) increase; increase
B) decrease; decrease
C) decrease; increase
D) increase; decrease
E) remain unchanged; remain unchanged

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