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To Reduce Inflation in an Economy at Full Employment,the Central

Question 109

Multiple Choice

To reduce inflation in an economy at full employment,the central bank must set the


A) real interest rate at a level lower than normal.
B) real interest rate at a level higher than normal.
C) inflation rate at a level lower than normal.
D) inflation rate at a level higher than normal.
E) GDP growth rate at a level higher than normal.

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