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    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
  5. Question
    Since 1970, the Fed Generally ________ the Interest Rate When
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Since 1970, the Fed Generally ________ the Interest Rate When

Question 115

Question 115

Multiple Choice

Since 1970, the Fed generally ________ the interest rate when inflation was ________.


A) raised; high
B) raised; low
C) lowered; high
D) The Fed has maintained a stable interest rate since 1970.

Correct Answer:

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