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If the AS and the AD Curve Intersect at a Level

Question 115

Multiple Choice

If the AS and the AD curve intersect at a level of real GDP that exceeds potential GDP,then the appropriate monetary policy is one that ________ the federal funds rate and ________ aggregate demand.


A) raises;increases
B) raises;decreases
C) lowers;increases
D) lowers;decreases
E) raises;has no effect on

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