Multiple Choice
Suppose the economy is currently in equilibrium. The Fed changes its policy by raising the discount rate. This would have the effect of
A) increasing aggregate demand and lowering the price level.
B) increasing aggregate demand and raising the price level.
C) decreasing aggregate demand and raising the price level.
D) decreasing aggregate demand and lowering the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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