Multiple Choice
If planned aggregate expenditure in an economy can be written as PAE = 15,000 + 0.6Y - 20,000r,and potential output equals 35,000,what real interest rate must the central bank set to bring the economy to full employment?
A) 2%.
B) 3%.
C) 4%.
D) 5%.
E) 6%.
Correct Answer:
Verified
Correct Answer:
Verified
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