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    Exam 21: The Monetary Policy and Aggregate Demand Curves
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    Because Prices Are Sticky in the Short-Run,when the Federal Reserve
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Because Prices Are Sticky in the Short-Run,when the Federal Reserve

Question 26

Question 26

Multiple Choice

Because prices are sticky in the short-run,when the Federal Reserve raises the federal funds rate


A) nominal interest rates fall.
B) real interest rates rise.
C) inflation falls.
D) real interest rates fall.

Correct Answer:

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