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    Macroeconomics Study Set 11
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    Exam 9: From the Short to the Medium Run: the Is-Lm-Pc Model
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    As Fiscal Consolidation Takes Place,the Central Bank Should
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As Fiscal Consolidation Takes Place,the Central Bank Should

Question 24

Question 24

Multiple Choice

As fiscal consolidation takes place,the central bank should


A) decrease the policy rate.
B) increase the policy rate.
C) increase inflation rate.
D) decrease money supply.

Correct Answer:

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