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    Exam 14: Monetary Policy
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    In the Short Run, an Increase in the Federal Funds
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In the Short Run, an Increase in the Federal Funds

Question 71

Question 71

Multiple Choice

In the short run, an increase in the federal funds rate ________ the real interest rate and ________ investment.


A) lowers; increases
B) raises; increases
C) lowers; decreases
D) raises; decreases

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