The simple monetary policy rule

Implies that:
A)if The simple monetary policy rule Implies that: A)if ,the Federal Reserve should lower the interest rate. B)if ,the Federal Reserve should raise the interest rate. C)if ,the Federal Reserve should not change the interest rate. D)all of the above E)if ,the interest rate is zero.

,the Federal Reserve should lower the interest rate.
B)if The simple monetary policy rule Implies that: A)if ,the Federal Reserve should lower the interest rate. B)if ,the Federal Reserve should raise the interest rate. C)if ,the Federal Reserve should not change the interest rate. D)all of the above E)if ,the interest rate is zero.

,the Federal Reserve should raise the interest rate.
C)if The simple monetary policy rule Implies that: A)if ,the Federal Reserve should lower the interest rate. B)if ,the Federal Reserve should raise the interest rate. C)if ,the Federal Reserve should not change the interest rate. D)all of the above E)if ,the interest rate is zero.

,the Federal Reserve should not change the interest rate.
D)all of the above
E)if The simple monetary policy rule Implies that: A)if ,the Federal Reserve should lower the interest rate. B)if ,the Federal Reserve should raise the interest rate. C)if ,the Federal Reserve should not change the interest rate. D)all of the above E)if ,the interest rate is zero.

,the interest rate is zero.

-Use the Aggregate Supply/aggregate Demand Model in Figure 13

Multiple Choice

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