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To Eliminate a Contractionary Gap,the Fed Can __________ the Money

Question 119

Multiple Choice

To eliminate a contractionary gap,the Fed can __________ the money supply,which would __________.


A) increase; increase the interest rate and investment
B) increase; decrease the interest rate and increase investment
C) decrease; increase the interest rate and investment
D) decrease; decrease the interest rate and investment
E) decrease; increase the interest rate and decrease investment

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