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    Exam 14: Monetary Policy and the Federal Reserve System
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    Describe How the Real Interest Rate Changes in a Keynesian
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Describe How the Real Interest Rate Changes in a Keynesian

Question 53

Question 53

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Describe how the real interest rate changes in a Keynesian model if a shock shifts the IS curve down and to the right and the Fed changes its policy to keep output unchanged.

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If the Fed is going to keep output uncha...

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