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    Exam 30: (AP) Macroeconomics: Part A
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    Expansionary Monetary Policy Decreases Interest Rates in the Short Run
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Expansionary Monetary Policy Decreases Interest Rates in the Short Run

Question 33

Question 33

Multiple Choice

Expansionary monetary policy decreases interest rates in the short run. What is the effect of expansionary monetary policy in the medium run?


A) Positive
B) Neutral
C) Negative
D) Depends on GDP

Correct Answer:

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