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    Macroeconomics Study Set 40
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    Exam 10: Aggregate Supply and Aggregate Demand
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    The Federal Reserve Lowers Interest Rates
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The Federal Reserve Lowers Interest Rates

Question 159

Question 159

Multiple Choice

The Federal Reserve lowers interest rates. As a result, in the short run, real GDP _ and the price level .


A) increases; rises
B) decreases; falls
C) increases; falls
D) decreases; rises

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