Multiple Choice
If the Fed's monetary policy reaction function does not change, then when inflation decreases the Fed responds by ________ the real interest rate, which ________ consumption and investment spending, which ________ output.
A) decreasing; increases; increases
B) increasing; increases; decreases
C) increasing; decreases; decreases
D) decreasing; decreases; decreases
Correct Answer:

Verified
Correct Answer:
Verified
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