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Assuming Flexible Prices, If the Federal Funds Rate Rises More

Question 18

Multiple Choice

Assuming flexible prices, if the federal funds rate rises more than expected, then the shift to the _____ by AD will be _____ than the shift to the _____ by AS in the short run.


A) left, greater, right
B) left, less, right
C) right, greater, left
D) right, less, left

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