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  3. Study Set
    Principles of Macroeconomics Study Set 11
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    Exam 12: The Determination of Aggregate Output, the Price Level, and the Interest Rate
  5. Question
    Assume the Federal Reserve Contracted the Money Supply in the Face
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Assume the Federal Reserve Contracted the Money Supply in the Face

Question 17

Question 17

Essay

Assume the Federal Reserve contracted the money supply in the face of high deficit spending on the part of Congress. Would this lessen or aggragavate the crowding out problem? Explain.

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This would actually make the crowding ou...

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