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  3. Study Set
    Principles of Economics
  4. Exam
    Exam 32: The Fed Model: Linking Interest Rates, Output, and Inflation
  5. Question
    If the Real Interest Rate Rises in the Economy, What
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If the Real Interest Rate Rises in the Economy, What

Question 30

Question 30

Essay

If the real interest rate rises in the economy, what kind of shock does the economy experience? Which curve in the Fed model is affected, and in which direction does the curve shift?

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