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    Macroeconomics Policy and Practice
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    Exam 13: Macroeconomic Policy and Aggregate Demand and Supply Analysis
  5. Question
    An Increase in Financial Frictions Results in ________
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An Increase in Financial Frictions Results in ________

Question 55

Question 55

Multiple Choice

An increase in financial frictions results in ________.


A) an increase in the federal funds rate
B) a reduced supply of credit to households and businesses
C) a decrease in short-run aggregate supply
D) an upward shift of the monetary policy curve

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