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If the Fed Wants to Raise Real GDP Growth by Raising

Question 23

Multiple Choice

If the Fed wants to raise real GDP growth by raising money supply growth,which of the following conditions will make monetary policy more effective in raising real GDP growth?


A) Uncertainty causes people to increase their demand for cash.
B) People lose confidence and reduce investment spending.
C) People believe the Fed will abandon its policy.
D) Prices continue to remain very sticky.

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