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In the Short-Run, If the Federal Reserve Increases Interest Rates

Question 17

Multiple Choice

In the short-run, if the Federal Reserve increases interest rates, then consumption and investment ________, planned aggregate expenditure ________, and short-run equilibrium output ________.


A) increase; increases; increases
B) increase; increases; decreases
C) increase; decreases; decreases
D) decrease; decreases; decreases

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