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    Exam 14: Monetary Policy
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    When the Fed Cuts the Federal Funds Rate, Real GDP
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When the Fed Cuts the Federal Funds Rate, Real GDP

Question 156

Question 156

Multiple Choice

When the Fed cuts the Federal funds rate, real GDP growth ________ and the inflation rate ________.


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

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