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    Exam 14: Modern Macroeconomics and Monetary Policy
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    If the Federal Reserve Unexpectedly Increases the Money Supply, Which
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If the Federal Reserve Unexpectedly Increases the Money Supply, Which

Question 178

Question 178

Multiple Choice

If the Federal Reserve unexpectedly increases the money supply, which of the following will most likely happen in the short run?


A) real GDP will rise.
B) real GDP will fall.
C) real interest rates will rise.
D) the budget deficit will rise.

Correct Answer:

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