Multiple Choice
If the Fed decreases the money supply,causing the interest rate to rise,GDP
A) increases by the same amount as the increase in the interest rate
B) decreases by more than the increase in the interest rate because of the multiplier
C) decreases by the same amount as the decrease in investment
D) decreases by more than the decrease in investment because of the multiplier
E) decreases by less than the decrease in investment because of the multiplier
Correct Answer:
Verified
Correct Answer:
Verified
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