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    Principles of Economics Study Set 6
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    Exam 26: Monetary Policy and the Fed
  5. Question
    Suppose the Economy Experiences a Recessionary Gap
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Suppose the Economy Experiences a Recessionary Gap

Question 129

Question 129

Multiple Choice

Suppose the economy experiences a recessionary gap.Expansionary monetary policy will _______ investment and _______ interest rates.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

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